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  1. #1
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    Question Prices of Gasoline? DR vs. USA

    Something terribly illogical, fraudulent, or unnatural seem to, or must be, going on with the prices of gasoline & related MV fuels in the DR. I'm lost! By way of explanation:

    * the international price of petroleum is approx $76 / barrel at the present time [13jul06];
    * The USA buys petroleum on the international markets;

    * this results in a USA price of approx $3.00 / gallon for regular gas, rounding off; this includes all USA state & fedeal taxes; the price of gasoline in the USA is set by the sellers, huge oil companies; it is not set by the US Gov't;

    * Venezuela & Hugo Chavez sell petroleum to the DR for less than the market price; how much less? I don't know. Does anyone?

    * Regular gas in the DR sells for approx US $4.25 / gallon, rounded off, including all national taxes; I don't think that there are any provincial or local taxes [?]; the price is the same throughout the DR, established & changed by the DR federal government;

    * If the DR is buying or receiving petroleum at lower prices that the USA is paying, how can gasoline cost 42% more [$4.25 vs. $3.00] in the DR than in the USA.

    * Has the law of supply & demand been revoked in the DR? Is the DR government accepting Chavez' generosity to benefit the government & related speical interests, instead of letting consumers enjoy Chavez' generosity? Is the DR gov't adding $1.25 / gallon in additional taxes? I'm lost! Can anone enlighten me? With specific info & nunbers? Thank you.

  2. #2
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    The first difference is in the rate of tax. the DR taxes at RD$ 36/gallon or approx, US$ 1.17. Where as the US taxes are 18.4 cents Federal and State tax averaging 22 cents.

    The other pricing difference you aren't considering are the costs of refining and handling.

    Quote Originally Posted by DR1
    4. Montas reveals gas tax shortfall
    The Presidential Minister for Technical Affairs (STP), Temistocles Montas, revealed yesterday that this year the government has accumulated a three billion-peso deficit in tax revenue from gasoline and other fuel taxes. Montas attributed this decrease in tax revenue to the conversion of many vehicles to the use of LPG rather than gasoline. Montas said that the government is not contemplating sending new legislation to the Congress or removing the current subsidies "for the time being". Montas told a CDN interviewer that each gallon of gasoline provided RD$36 in taxes for the government, but LPG does not pay any tax. He said that the conversion to LPG is the main factor behind the RD$3.3 billion decrease in fuel tax revenue. Fuel prices in the DR are at record highs. For the current prices, see http://www.seic.gov.do/combust/aviso.htm
    Quote Originally Posted by Wikipedia
    United States of America
    The first U.S. state tax on fuel was introduced in February 1919 in Oregon. It was a 1 cent per U.S. gallon (0.3/L) tax. In the following decade, all 48 U.S. states and the District of Columbia introduced a gasoline tax, and by 1939 an average tax of 3.8/gal (1/L) of fuel was levied by the individual states.

    While state fuel taxes had been around for more than a decade, the first federal gasoline tax in the United States was created on June 6, 1932 with the enactment of the Revenue Act of 1932 with a tax of 1 cent/gal (0.3/L). The U.S. federal gasoline tax as of 2005 was 18.4/gal (4.86/L), and the gasoline taxes in the various states range from 10 cents to 33 cents, with an average about 22 cents per U.S. gallon (5.8/L). Unlike most goods in the U.S., the price displayed includes all taxes, rather than being calculated at the point of purchase.

  3. #3
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    Don't whine in Belgium for regular gasoline you pay 1.44 at 1.27$/=1.83$. That is for 1 liter.

    Greetings

    Johan

  4. #4
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    at 3.8 liters per gallon would make it $7 per gallon


    yes the higher prices are due to higher taxes

  5. #5
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    $1.08 Cdn. per liter here in Canada and there are 4.56 liters per imperial gallon so that equates to $4.92 per imperial gallon....expensive

  6. #6
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    Quote Originally Posted by Hlywud
    $1.08 Cdn. per liter here in Canada and there are 4.56 liters per imperial gallon so that equates to $4.92 per imperial gallon....expensive
    To be comparing apples to apples, $4.92 Cdn/imperial gallon is equal to $4.10 Cdn/US gallon which is equal to $3.62 US/US gallon. Sound any better?

  7. #7
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    Default Who's whining

    Quote Originally Posted by heldengebroed
    Don't whine in Belgium for regular gasoline you pay 1.44 at 1.27$/=1.83$. That is for 1 liter.

    Greetings

    Johan

    The man is bringing up a point which has nothing to do with Belgium. Yeah we all know you guys pay a lot for oil. But that is another topic for yet another day.

  8. #8
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    Quote Originally Posted by gringosabroso
    Is the DR government accepting Chavez' generosity to benefit the government & related speical interests
    Someone is always benefiting bigtime in this country. Even 20$/gal I doubt we'll see a single jeepeta less on the streets. Same goes for the USA.

  9. #9
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    Default Amazes me

    Quote Originally Posted by PlantaFULL
    Someone is always benefiting bigtime in this country. Even 20$/gal I doubt we'll see a single jeepeta less on the streets. Same goes for the USA.

    The streets in the Dominican Republic are still jam packed with cars that seem to be going nowhere.

    Americans just love their cars and will drive to nowhere even if the gas is $20 a gallon, they can't help it and the Arabs love it!

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