2003News

More gas on the way

There are reports that the domestic (propane) gas shortage has reared its head once more. Yesterday, most propane supply depots were closed, affecting many households dependent on the fuel, and public transport drivers who have converted their vehicles to run on this cheaper alternative to gasoline. The few depots that were open for business were overwhelmed by desperate customers’ demand. In contrast to last week, this latest shortage is not being attributed to the government’s failure to pay subsidies. Instead, it appears that consumers have been buying extra supplies to make up for last week’s shortage, and possibly some are also hoarding the fuel in order to preempt future shortages. The government paid gas suppliers 50% of the RD$500 million owed to them in subsidies. The authorities maintain they are committed to keeping the price down to RD$25 a gallon, and have to pay RD$12.5 per gallon to compensate suppliers for the difference in market price, which stands at RD$37.50 per gallon. El Caribe reports that a ship is due to arrive in the country today with much-needed supplies of propane.