El Caribe reports that owners of luxurious SUVs are turning to propane fuel in order to get around town. Reporter Daniel Garcia says that since 2003, owners of larger vehicles have increasingly resorted to using the heavily-subsidized fuel to run their vehicles. According to some installers of these systems, the demand for propane gas systems for large, modern vehicles has increased 100%. According to Ramon Pichardo, who has 20 years of experience installing such alternative systems in vehicles, his shop on Virgil Diaz Street in Villa Juana is seeing a lot of new cars, SUVs and small trucks seeking to convert to the cheaper fuel. Mercedes Benz, Lexus and Jaguars from the 2000 to the 2004 model year are now using propane gas, with the reason being obvious. A full tank of gasoline would cost the Jaguar owner RD$1,882, while a tank of propane would cost RD$500. At a tank-load a week, the installation price for the new system would be recovered in just six months. The bonanza, however, might not last long.
According to the sidebar article, the IMF agreement calls for the removal of subsidies on propane, although Finance Minister Rafael Calderon said he had negotiated a deal to permit propane gas to remain cheap for low-income sectors. The specifics of the deal’s application have not been released. Last November, when gas consumption was less, the government was paying approximately RD$16 of subsidy per gallon of propane, entailing a total bill of RD$400 million for the month? Today, however, the government is paying RD$29.33 pesos per gallon, a 100% increase since last month alone.