With RD$1.5 billion subsidy, the government once again curbs fuel price hikes

The Dominican government announced this Friday that it maintains the fuel subsidy of RD$1.5 billion to stop the increases in all hydrocarbons during the week of July 2 to 8.

During a live broadcast, the Vice Minister of Internal Trade, Ramón Pérez Fermín, reported the impact of fuel markets globally and the impact on the Dominican Republic. “As of Wednesday, June 29, 2022, the international price of WTI averaged US$108.60, for a decrease of 2.9% in relation to the average of the previous week, which amounted to US$111.87,” he said.

He also highlighted that WTI had an accumulated increase this year 2022 of 41.1%. “Although many thought that the war in Ukraine would be short, it is already four months old, which complicates the economic outlook, particularly in relation to hydrocarbons.”

Although the drop in the average price decreased slightly, fuels continue to exert enormous economic pressure due to dramatic increases at a global level, which has led the government of President Luis Abinader to assume 100% of said increases at the cost of 1,471 million weights. He added that for this week, with this subsidy, they are preventing LPG from increasing by 6.06 pesos per gallon; Premium Gasoline for RD$78.19; regular Gasoline for RD$86.96, Regular Gasoil for RD$108.38, and Optimo Gasoil for RD$111.45.

For the week from July 2 to 8, 2022, the Ministry of Industry, Commerce, and MiPymes provides that fuels be marketed at the following prices:

• Premium gasoline will be sold at RD$293.60 per gallon, maintaining its price.
• Regular Gasoline RD$274.50 per gallon maintains its price.
• Regular Diesel RD$221.60 per gallon maintains its price.
• Optimum Diesel RD$241.10 per gallon maintains its price.
• Avtur RD$298.91 per gallon maintains its price.
• Kerosene RD$338.10 per gallon maintains its price.
• Fuel Oil #6 RD$192.11 per gallon maintains its price.
• Fuel Oil 1%S RD$211.77 per gallon maintains its price.
• Liquefied Petroleum Gas (LPG) RD$147.60 per gallon maintains its price.
• Natural Gas RD$28.97 per m3 maintains its price.

The weekly average exchange rate is RD$54.73 from the Central Bank’s daily publications.