The Dominican government seems to be keeping more than its share of taxes on oil prices in the DR. Diario Libre points out today that a year ago, on 13 October 2007, the price of the oil in the Texas market used as reference to set prices in the DR was US$83.08 the barrel. At that time, fuel prices were RD$154 premium gasoline; RD$142.80 regular; RD$124.50 premium diesel; and RD$120.50 regular diesel; RD$81.04 unsubsidized propane.
A year later, for this week the price of petroleum is coincidentally the same – US$83 – but local prices are much higher than a year ago. This week, premium gasoline sells for RD$181 (RD$27 more), regular is RD$166 (RD$23.20 more) premium diesel is RD$154 (RD$29.80 more), regular diesel is RD$150.40 (RD$29.90) and all GLP sells for RD$74.63 (RD$6.41 less).
According to Ramon Alburquerque, a former president of the Dominican Petroleum Refinery, if the Petrocarbon Law were applied correctly, premium gasoline should cost RD$115 and regular gasoline RD$103. Transport leader Juan Hubieres says that premium gasoline should cost RD$148 and not RD$181 and regular diesel RD$142 and not RD$150.40, with regular gasoline costing RD$114 instead of RD$150.40 and propane RD$60 and not RD$74.63.
Industry and Commerce Minister Jose Ramon Fadul told Diario Libre: “It is not possible to automatically drop the local price of fuel when there are reductions in world oil prices, because those two markets are not necessarily behaving in a uniform manner,” he said.
He said that the DR only refines 25% of its domestic consumption, while 75% is imported refined, with higher prices. He said that recent hurricanes had forced refineries to sell their reserves, which increased source market oil prices.