Faced with popular demand from businesses and consumers, manufacturers say that despite the drop in the cost of oil and local diesel costs, they have not cut the prices of their products because the government has not reduced electricity tariffs. Herrera Industries Association (AEIH) president Antonio Taveras said that this country has a market economy, where it is understood that competition should set the prices. “The electricity bill is a major component in production, and it has not gone down, and is not going to go down, because the government has reduced part of the subsidy that it has been granting the generators,” said the businessman, giving his reasons why manufacturers have not cut prices of local goods.
He said the Pro-Competencia government agency, which should be in operation, could serve as an arbiter to ensure increased competition and fewer cartels in the economy.
The price of oil has gone down more than 50% in the last six months on the international market. Fuel prices in the Dominican Republic have been reduced by about 25%, but the price of products in the basic food basket has remained unchanged or has increased, with few exceptions.