The debate is on as to whether the government should increase the price of fuel or not. International prices have climbed to US$25, near the level where they were when in December 1996 the government increased the price of premium fuel to RD$32, subsequently reducing it to RD$27.90. Businessmen and the government favor an increase in the price of fuel. Rafael Camilo, of the National Planning Office, said that an analysis of the situation shows that fuel prices at year’s end are usually higher. The excise tax is primarily used to pay the foreign debt. Businessman Celso Marranzini, president of the National Council of Businesses (CONEP) is cited in Hoy newspaper saying that if the government does not adjust the prices on time, the US$-RD$ exchange rate could be affected, increasing the cost of items produced here and those imported. He said the inflation rate could increase to 7 or 8%, up from 6%. The president of the Business Owners Association, Henry Sadhala feels that the effect on the economy of an increase in domestic fuel prices will be less felt than if the government has to use its reserves or print money to meet its international commitments. The president of the Senate, Ramón Alburquerque (PRD-Monte Plata) is contrary to increasing the price of fuel. He says that when the government increased the price of fuel in 1996 (when international market prices were up to US$25 per barrel), it promised to reduce it when international market prices declined. They declined to US$10 (start of 1999), but the government maintained the high prices, benefiting from the windfall in taxes.
