Martí warns that changing the LPG mixture to 90% propane would cause many explosions due to the poor condition of the cylinders.

The businessman claims that changing the formula of the propane and butane mixture to be 90% propane would create a high-risk situation, a very dangerous one.

Regarding the safety factor, Martí indicated that the stock of 25 to 50 pound LPG cylinders is in poor condition and many of these are repaired in neighborhood yards, so if the pressure is increased with a higher proportion of propane, many explosions would occur.

Propane gas has a pressure of 250 PSI and butane 100 PSI, and that mixture of both types of gas lowers the pressure and makes it safer.

In this regard, the director of technical services at Tropigas, Francisco Camino, made the same point: In this country it is not possible because the stored propane increases the pressure and the gas tank stock is relatively deteriorated.

He indicated that there are many known cases where people paint gas tanks in their homes to disguise the deterioration.

Camino asserts that greater pressure means greater risk.

Recently, the Energy Institute of the UASD (IEUASD) revealed in an investigation that the price of LPG is overvalued by RD$30 to the population due to the official calculation in the Import Parity Price (PPI) carried out every week by the Ministry of Industry, Commerce and MSMEs ( MICM ) and, among several suggestions, proposed modifying the proportion of the LPG mixture, which is 70% propane and 30% butane, so that the propane is increased to 90%.

“Propane is stored at higher pressure than in the mixture. The issue is that the tanks…the tank fleet in our country is relatively deteriorated, because they are not from the distribution companies, they are in homes and unfortunately people paint them to hide many flaws that are sometimes not visible. So, if they fail at the current pressure…imagine what could happen if the pressure rises,” the specialist explained.

I have maintained that in addition to the gas storage pressure there is another factor, which is the rate at which the gas is dispensed into the cylinders and in Tropigas the risk is below the rest, with practically zero levels of incidents.

In gas, he said, the pressure and ambient temperature must be taken into account.

Lower price

Analysts this Wednesday considered the IEUASD suggestion viable because it would lower the price of fuel that the population pays when using LPG (liquefied petroleum gases).

LPG is sold in the country, in a mixture of 70% propane and 30% butane. And, although this fuel is only affected by the 16% advalorem tax of tax reform 495-06 and by a burden on the environment and Bonogas, the IEUASD assures that it is being sold 30% above what it should cost the population according to the formula for calculating the Import Parity Price (PPI).

According to industry experts, the price of propane gas is cheaper than that of butane and there is a current standard that allows it to be used up to 90%, although they specify that the quality is not the same, due to its caloric effect. For this reason, they suggest that the Government analyze this possibility and carry out a campaign to raise awareness among the population, since the propane flame is blue and that they do not think that they are being deceived.

Furthermore, in vehicular use the car loses a little power, so it would be better suited to small cars used in urban public transport, where you will not feel the loss of power.

Likewise, we would have to wait for 45 days of storage and the closing of contracts of the importing companies so that the measure, if adopted, can be materialized.

According to this week’s official notice, issued by the Ministry of Industry and Commerce and MSMEs ( MICM ), an entity under its command of the Vice Ministry of Hydrocarbons, established a final sales price for a gallon of LPG at RD$135.20. This value includes RD$0.80 for the Bonogas subsidy, RD$13.54 for the tax reform 495-06, RD$11.71 for the margins to the distribution sector and RD$17.90 for the retailer and RD$6.68 for transportation commission.

In total, the tax burden on LPG is RD$50.63.

Learn more

Analysis of the IEUASD

The Energy Institute of the UASD (IEUASD) reveals that “the fuel pricing policy in the Dominican Republic presents significant distortions that harm the consumer and, in the case of LPG, generate hidden tax revenues for the Government.”

At various times in the country, efforts have been made to modify Law 112-00 on Hydrocarbons and Fossil Fuel Derivatives. This included a bill in 2022 that would have modified the PPI, but it was never even sent to committee.