Officials discuss the impact of rising fuel prices in the Dominican Republic

Santo Domingo.- Dominican government officials and business leaders discussed the impact of rising international fuel prices on the local economy and the sustainability of measures to protect consumers during a forum held Wednesday in Santo Domingo.

Industry and Commerce Minister Eduardo “Yayo” Sanz Lovatón said rising refining costs, particularly for diesel, are increasing pressure on the government’s weekly fuel subsidies. He noted that authorities may consider targeting subsidies toward specific fuels, economic sectors or population groups.

Sanz Lovatón explained that while WTI crude oil prices fell 3.3% between September and October, from US$94.60 to US$91.40 per barrel, premium diesel prices increased 9.4%, from US$191.30 to US$209.20.

He also detailed the components of diesel pricing, explaining that import costs account for 70.8% of the price, taxes represent 19.5%, and distribution and marketing margins make up 10.7%.

Meanwhile, Finance and Economy Minister Magín Díaz said fuel prices have risen faster than international crude oil benchmarks. Since January, diesel prices have increased 130.2%, gasoline 87% and WTI crude 67.6%.

Díaz added that the government has maintained an average weekly fuel subsidy of RD$1.228 billion since March 7, rising to RD$1.5 billion over the past 15 weeks, as authorities seek to limit the impact of international price increases on consumers.

Both officials addressed the challenges posed by the international energy market during the forum “New Reality: Dominican Republic Facing the Global Impact on Fuels,” held at the Hotel El Embajador. The event brought together economists, business executives, industry representatives and government officials to examine the economic consequences of rising fuel costs and the country’s fiscal outlook.