2005News

600,000 for gas subsidy

The Dominican government has identified 600,000 families that fulfill the necessary conditions for receiving propane gas at a subsidized price. The rest of the population will have to pay the full cost for the gas, which is the main cooking fuel in most urban areas. A further 260,000 families are currently being processed. Sources close to the Executive Branch say that at least 800,000 families will receive the subsidy, and that IMF pressure to reduce subsidies is forcing the government to focus its resources on the most needy. Unfortunately, the Letter of Intent that the government sent to the IMF talked about just 500,000 families receiving the subsidy. Abolishing the current subsidy will elevate the cost of propane gas to about RD$50 pesos a gallon, double the current price of cooking gas.