The economic section of the government-intervened List?n Diario reports that
the state subsidy for electricity and propane gas will reach RD$11.3 billion, a
RD$5 billion (or 79.36%) increase over the 2004 budget figures. The 2004 budget
had allocated RD$6.3 billion for the subsidies, and in the first quarter the
government had already spent RD$3.9 billion. Estimates for the subsidy on
propane were based on oil at US$30 a barrel, while last Friday a barrel of oil
hit US$40 on the commodity markets. A source close to the Central Bank revealed
that the subsidy on electricity for those who consume between up to 200 KWH per
month was based on an exchange rate of RD$40 to the dollar, while currently the
dollar is at RD$50 to US$1.