Industry & Commerce Minister Francisco Javier Garcia told reporters from the Diario Libre that his team would aim the propane subsidy at family units in order to implement the funding more efficiently. Currently, the industrial sector uses 22% of all local propane and gains about RD$162 million in the process. According to the minister, this is a gift from the Dominican State that is ?unnecessary.? Javier Garcia met with distributors and retailers of propane to discuss ways to get a better focus on the use of the subsidy, especially concerning the poorest sector of the population, which, according to government figures, represents some 27% of the total market. According to Minister Javier Garcia, propane use during the first seven months of this year increased by 19 million gallons over a similar period of 2003, while the demand for regular gasoline declined by 14 million gallons, a clear indication that many drivers are switching over to the subsidized fuel.
At current costs, propane should sell at RD$62 a gallon. The government is subsidizing RD$37 pesos for every gallon sold, representing a cost to the state of about RD$8 billion a year. Industry & Commerce data indicate that transportation uses 27% of the propane, industry, including hotels and restaurants, uses 22%, and poor families account for 27%.