Since March 2023, by Presidential decree, the Dominican government has been subsidizing fuel prices across the board.
Back in March 2023, faced with the effects of international chaos in the oil industry as a result of the war in Ukraine, President Abinader ordered government subsidies to stabilize fuel prices as long as the barrel of West Texas Intermediate (WTI), the crude oil of reference for Dominican fuel prices, was over US$85 a barrel and less than US$115 a barrel.
However, when crude oil exceeded that US$115 barrier, Abinader decided to maintain the subsidy program and continue with the fixed fuel price.
It must be remembered that fuel taxes in the Dominican Republic are among the highest in the region, and the government relies heavily on this income.
In the past few weeks, crude WTI has dropped below US$80 a barrel and is currently hovering around US$70 a barrel. As a result, the Ministry of Industry and Commerce has decided to lower gasoline prices by RD$3.00 a gallon for premium and RD$2.00 a gallon for regular. Other fuels, such as avtur, fuel oil and kerosene also decreased in price. The price of propane gas has remained the same.
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Listin Diario
18 December 2023