Prices of all fuels fall

Gasoline and diesel prices have fallen again, coinciding with the worsening of the second wave of the coronavirus and the increase in restrictions in Europe’s leading countries and the United States.

For the week of October 31st through November 6th, the MICM has set regular gasoline to be sold at 193.20 and premium gasoline at 203.40, for a reduction of 2.60 and 2.50 pesos per gallon, respectively; while, regular diesel will drop 1.00 peso to be sold at 148.50 and Optimo at 157.70, dropping 1.40 pesos per gallon. Likewise, liquefied petroleum gas (LPG) will maintain its price and be sold at 113.50 pesos per gallon.

The decrease in prices of all locally sold fuels results from the continuous downward trend of oil due to restrictions in many countries in the face of the second wave of coronavirus, especially in the United States. The price loses what was earned in the month and returns to the levels it began in October.

The increase in coronavirus infections, reaching record figures in countries such as the United States, Russia, and France, together with the new wave of restrictions that it is generating, clouds the prospects of economic recovery and, in the process, the oil demand.

Cyclical markets like oil could suffer fully in the event of a brake on the recovery of the world economy so that investors choose to undo positions, even more so after the delay in the economic stimuli of more than two trillion dollars that the United States intended to launch is confirmed, and that will be postponed, at least, until after the elections.

The negative impact of the renewed restrictions to face the constant outbreaks of COVID-19 all over the world have put oil prices in a downward spiral, registering this Thursday their worst session since mid-June. If market conditions worsen, OPEC and its allies will have no choice but to challenge their plans to increase production.

Under these conclusions, for the week of October 31 to November 6, the Ministry of Industry, Commerce, and Mipymes has ordered that fuels sell at the following prices:

Premium gasoline will be sold at RD$203.40 per gallon lower by RD$2.50 per gallon.
Regular gasoline: RD$193.20 per gallon lower by RD$2.60 per gallon.
Regular gasoline oil will sell for RD$148.50 per gallon, RD$1.00 lower per gallon.
Gasoil Óptimo: RD$157.70 per gallon, RD$1.40 lower per gallon.
Avtur: RD$108.40 per gallon, lower by RD$1.50 per gallon.
Kerosene: RD$131.70 per gallon, RD$1.80 less per gallon.
Fuel oil #6: RD$100.00 per gallon, RD$1.00 less per gallon.
Fuel Oil 1%S: RD$109.50 per gallon and maintains its price.
Liquefied Petroleum Gas (LPG) remains at RD$113.50/gl.
Natural Gas for RD$28.97 per cubic meter maintains its price.

The average exchange rate is RD$58.48, according to a survey conducted by the Central Bank.