President says it will be impossible to continue with fuel subsidies

Santo Domingo, DR
President Luis Abinader affirmed this Wednesday that if oil prices continue to rise, it will be impossible to maintain the fuel subsidy in the country.

“It is impossible to continue. We subsidized the price of oil, of all hydrocarbons, last year by some 13 billion (pesos)…. It is impossible to continue with that. It is impossible”, said the President during an interview in the morning program Hoy Mismo, which is broadcast by Color Visión (channel 9).

The President explained that the Government is not prepared to rise a lot per barrel. “We are prepared for it to go up a little…” he admitted.

He referred that the Brent oil barrel was quoted at 83 dollars and West Texas at 81. He added that the cost of natural gas and coal has also risen, impacting electricity generation.

He said that if oil continues to increase, there will come a time when he will have to talk to the country to see what can be done, especially to avoid higher inflation because the inflationary effect of oil is transversal in the whole economy. He stated that this is why fuel prices are his most significant concern.