Archive News

The latest blow to local wallets was a RD$7 per gallon increase in the price of diesel fuel. A gallon of the cheapest diesel fuel now costs RD$181.90. Propane went up RD$4 a gallon, and kerosene went up RD$2.70 a gallon. Premium gasoline is now at RD$207.90 and regular is RD$197.80. Subsidized propane is now selling for RD$67.95 a gallon and the non-subsidized gas is RD$89.71. Never in the course of human events have fuel prices been so high in the Dominican Republic.

30 June 2008 - DR1 Daily News

Amid the calls for increased exports to pay for oil under the PetroCaribe agreement, Diario Libre is reporting that 12 products have been identified as having good export potential. What is interesting is that neither coffee nor cacao is on the list. Instead, it includes rice, beans, garlic, onions, mangoes, avocados, bananas, oriental vegetables, beef, poultry and milk. The information comes from the Inter-American Institute for Agricultural Cooperation (IICA). The IICA is working in conjunction with the Ministry of Agriculture and the National Competitiveness Council to support the commercial success of these crops. The newspaper lists the areas where these items are produced and how much they earned in past years. For example, the export of oriental vegetables brought in US$80 million over the last few years. Avocado production exceeds 105,000 tons and will increase as the damage caused by last year's tropical storms is repaired. Farming these crops generates half a million jobs.

30 June 2008 - DR1 Daily News

Nestle Dominicana S.A. has announced that it will no longer produce or sell ice cream in the country and will stop all ice cream production at its Manoguayabo factory immediately. The company will also stop importing ice cream to the DR. A press release from the company explained that the dominance of a particular brand of ice cream along with competition from other ice cream companies made it extremely difficult to compete and grow in the DR. The press release continues by saying that sales weren't able to grow sufficiently in order to make a substantial profit. This is one of those rare cases of local brands, in this case, Bon Ice Cream, winning out over well-funded international imports. In a company press release, Nestle says that "the market is dominated by an almost 40-year old brand that has strong backing from Dominicans".

27 June 2008 - DR1 Daily News

A barrel of crude oil hit the US$140 mark for the first time ever yesterday. The price of fuel is increasing even after Saudi Arabia agreed to increase crude oil output by 200,000 barrels per day by July. This is the second time that the Saudis have agreed to increase production. In May they agreed to up production by 300,000 barrels. The BBC reports that speculation has been to the detriment of oil prices and some believe this could lead prices to reach US$200 per barrel within 18 months. Premium gasoline in the DR is at RD$205.60 and regular gasoline, at RD$196.80, is expected to soon break the RD$200 mark, bringing gasoline to cost in the DR around US$6 the gallon, compared to US$4 in the US. The difference in price is due to the high local taxes on the gallon.
For updates on fuel prices, see

27 June 2008 - DR1 Daily News

The recently announced "monitoring" agreement with the IMF will be the DR's ninth agreement with the international financial institution since 1959 and it is receiving support from the DR's private sector. According to Diario Libre, the agreement will not entail the disbursement of funds, nor will it involve a revision of the goals as set out in the Stand-by Arrangement that ended last January. The DR's private sector believes the agreement will serve as a vote of confidence for foreign investors interested in the DR. Pablo Piantini, president of the Young Entrepreneurs Association (ANJE) said the agreement could bring more investments to the DR because the IMF projects an image of transparency and confidence. However, former Central Bank governor Carlos Despradel questioned the circumstances under which the agreement was signed. Quoted in El Caribe, Despradel says that this agreement is much lighter than the previous Stand-by arrangement, because the government didn't want such a rigid agreement this time. Despradel also entertained the idea that possibly the IMF didn't see the need for another rigid agreement. He added that ultimately what is important is to see if the government is willing to monitor itself with or without an agreement.

26 June 2008 - DR1 Daily

The Institutional Program for Regional Integration (ISPRI) was officially launched during a ceremony at the Hotel Santo Domingo yesterday. The ISPRI will work for the next two years to help the DR transition into the recently signed EPA signed between CARIFORUM and the EU. The ISPRI will have a EUR6 million budget. Of the EUR6 million, EUR5 million comes from the EU Commission while EUR1 million comes from the Dominican government. The ISPRI will cooperate with the Foreign Trade Department (DICOEX) at the Ministry of Industry and Commerce, the Committee for Commercial Negotiations (CNNC) and the European Funds National Authorizing Office (ONFED).
For more details on the EPA click here: www.dr1.com/trade

26 June 2008 - DR1 Daily

As soon as Leonel Fernandez begins his third term as President of the Dominican Republic, the country will sign a "monitoring" agreement with the International Monetary Fund (IMF). According to Diario Libre, the agreement will not entail the disbursement of funds, nor will it involve a revision of the goals as set out in the Stand-by Arrangement that ended last January. At least, according to the newspaper, this is what was released to the press after a three-hour meeting held between President Fernandez and IMF officials at the Presidential Palace yesterday. The IMF delegation was headed by top IMF official Murilo Portugal, and the President was assisted by his economic cabinet. According to the press, the monitoring involves a twice-yearly submission to the IMF on the government's execution of its economic programs. Chief economic advisor and Economy, Planning and Development Minister Temistocles Montas told reporters that this agreement would help the DR maintain its "close ties with the IMF".

25 June 2008 - DR1 Daily News

Spanish telephone company Telefonica is coming to the DR and will offer phone and broadband internet service. Diario Libre quotes comments made by Dominican Telecommunications Institute (INDOTEL) director Rafael Vargas. Vargas said that Telefonica might enter into high-level negotiations with existing communications companies in the DR. No details on when exactly Telefonica would begin to establish a presence in the DR. Telefonica was founded in 1924 and is one of the world's largest telecommunications providers with 228 million users worldwide. It currently operates in 24 countries, including 12 in Latin America.

24 June 2008 - DR1 Daily News

IMF Deputy Managing Director Murilo Portugal says that high fuel and energy prices are negatively affecting the country's deficit in the current accounts balance of payments. The economist said the issue with fuel and energy prices is more a problem of balance of payments than inflation. He explained that for every US$10 rise in barrel prices, the deficit in the current accounts increases by US$400 million for the DR. He explained that the DR needs an extra US$500 million to deal with the issue. Yesterday, Portugal and other IMF officials met with the DR's economic team and members of the private business sector. Portugal is expected to meet with President Leonel Fernandez today and is due to speak to the media shortly afterwards. El Caribe reports that Portugal is in the DR at the invitation of Central Bank Governor Hector Albizu.

24 June 2008 - DR1 Daily

Over the medium term the obligations that the Dominican Republic has contracted with Venezuela under the PetroCaribe Pact cannot be paid by foodstuffs produced in the DR. The main cash crop, black beans, has not seen an increase in local production for years. Ever since it was made known that the oil from Venezuela could be paid for with farm products, people, including Presidents Chavez and Fernandez have referred to the Dominican Republic as the potential "breadbasket of the Caribbean," but the programs for planting more beans and other products have yet to start, according to Listin Diario. The Dominican Republic has to pay Venezuela US$4.8 million next October as part of the Petrocaribe Pact that finances a major portion of the 50,000 barrels a day that is allocated to the country under the pact. While black beans might be high on the Venezuelan list of farm products, they are not well-liked in the DR and are not all that profitable for farmers, and, therefore they are not planted on a lot of land. Agricultural economist Frank Tejada says that rice, milk, beef, poultry and eggs can be shipped to Venezuela, since the DR has an installed capacity to produce in excess of local consumption.

23 June 2008 - DR1 Daily News