Economy October 17, 2016 | 10:24 am

Buy car in DR

American Chamber backs elimination of transport fuel subsidy

Santo Domingo.- The American Chamber ofCommerce of the Dominican Republic (AMCHAMDR) supports the decision taken bythe government to remove fuel subsidy to cargo and passengers transport, a stepthat should serve to reduce distortions in that market, promote freecompetition in this sector and increase competitiveness.

The measure taken by the government in 2011in favor of the transport sector was temporary and a response to the behaviorof oil prices at that time, which had risen to levels not seen before. Now thatthese prices are well below those recorded at that time, the measure not onlyhad to be eliminated, but also had to end the parallel oil market that had beencreated with the transporters who received it, creating a situation unfair competitionto the detriment of legitimate fuel distributors.

The elimination of subsidies to transportersannounced by the government is a positive step for the fuel sector as it movestowards greater transparency, efficiency and operational clarity.

AMCHAMDR lauds the government’s actions andencourages it to consider implementing additional measures to also ensuretransparency and fair competition in the transport sector, currently controlledby illegal cartels that operate outside the law and undermine the competitivenessof productive sectors of our economy and that translates into higher prices on goods andservices for consumers.

0 0 votes
Article Rating
Notify of

Inline Feedbacks
View all comments