Industry and Commerce: Hurricane Laura altered Dominican Republic fuel prices
For the week of August 29 to September 4, the Ministry of Industry, Commerce, and Mipymes (MICM) provides that fuels be sold at the following prices:
- Premium gasoline will be sold at RD $ 209.30 per gallon, up RD $ 2.70 per gallon.
- Regular Gasoline will be sold at RD $ 199.90 per gallon, going up RD $ 3.60 per gallon.
- Regular diesel will be sold at RD $ 150.70 per gallon. It maintains its price.
- Optimal diesel will be sold at RD $ 164.10 per gallon, up RD $ 0.80 per gallon.
- Avtur will be sold at RD $ 115.30 per gallon down to RD $ 2.20 per gallon.
- Kerosene will sell for RD $ 139.20 per gallon down to RD $ 2.30 per gallon.
- Fuel Oil # 6 will sell for RD $ 105.10 per gallon down to RD $ 0.70 per gallon.
- Fuel Oil 1% S will be sold at RD $ 115.20 per gallon down to RD $ 1.10 per gallon.
- Liquefied Petroleum Gas (LPG) will be sold at RD $ 111.90 / gl: it goes up. RD $ 0.10 per gallon.
- Natural Gas RD $ 28.97 per cubic meter, maintains its price.
The average exchange rate is RD $ 58.47 according to a survey carried out by the Central Bank.
According to a note from the MICM, the United States Office of Environmental Safety and Compliance reported that 85% of current oil production in the Gulf of Mexico has been shut down, along with about 61% of natural gas production due to passage of Hurricane Laura along the coast of the Gulf of Mexico that generated the closure of the main oil companies in Texas such as Motiva, ExxonMobil, Total, Valero and Phillips that refine 1.56 million barrels per day.
The US energy industry pre-emptively prepared for the hurricane, reducing crude production to a minimum approaching the level of Hurricane Katrina in 2005 and halting oil refining off the Texas and Louisiana coasts. For this reason, gasoline prices have risen 10% since Friday in the gulf areas and have pushed oil futures contracts to their highest prices since the beginning of March, something that has also contributed to the fact that reserves crude oil in the US have fallen more than expected.
On the other hand, OPEC + is forcing a reduction in daily crude production and has reached a potential agreement with Russia to extend the reduction of additional shale production in September. As a result, oil futures appreciate about 1% after hearing this news. OPEC estimates that oil demand should return to pre-covid levels by the end of 2020.