With oil breaking the mythological US$55 dollar barrier (at $55.05 a barrel for West Texas “light sweet crude”) the Dominican economy is undergoing increased pressure. In spite of a stronger peso, the current price of oil will oblige the Dominican government to use as many pesos to purchase it as when the peso was situated at 50 to the dollar. The new prices are cutting internal demand. The higher oil prices come at a time when business leaders are asking the government to reactivate the economy in the face of falling sales across the board. The higher price for oil also neutralizes the positive effects of a stronger peso and the finances of the electric sector. And this, in turn, makes it more difficult to overcome the financial problems of the sector. The IMF agreement obliges the government to greatly reduce the subsidy that is being paid to the electricity providers. And the level of the subsidy depends as much on the exchange rate as on the price of petroleum on the world markets. World market prices are being influenced by a colder than normal winter in many parts, and the rising demand for oil in China.