Economy February 3, 2024 | 11:39 am

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Fuel prices in the Dominican Republic are among the highest in Central America

Santo Domingo—Crees points out that high fuel taxes and the profit margins established by law are the main factors behind this reality.

The Dominican Republic is the third country with the most expensive fuel prices compared to similar economies in Central America, according to the Regional Center for Sustainable Economic Strategies (Crees) in an article.

With the prices of the two types of gasoline and optimum diesel, the country exceeds the Central American average; it details and indicates that the Dominican Republic is only surpassed by Costa Rica and Nicaragua in the price of fuels.

CREES explains that despite the prices paid by the public, which include the decrease due to the subsidy that is in place in the country, even after considering the adjustments, the prices of premium gasoline, regular gasoline, and Optimum Gasoil exceed the regional average by 15.3%, 14.2%, and 3.6%, respectively.

In explaining the high price of fuels, he specifies that the high taxes on fuels and the profit margins established by law are the main factors behind this reality.
He indicates that, for example, for the week analyzed, January 22, 2024, taxes for premium gasoline represented 33.3% of the sale price, which places the Dominican Republic as the country in the region with the highest taxes for this type of gasoline.

He recommends that the tax reform proposal presented by CREES could represent a step towards a more balanced and favorable tax structure for Dominican society.

“This important tax transformation would contribute to reduce transportation costs, in addition to increasing the disposable income of citizens. In this context, there is a need to promote policies that encourage efficiency, competition and innovation in the commercialization and production of fuels,” it states.

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