As people scurried to fill their tanks last Friday, the nation was hit by the reality imposed by the disaster unleashed by Hurricane Katrina in the Gulf region of the United States. Fuel prices hit record prices, just as predicted by the Minister of Industry and Commerce a week ago. Regular gasoline went up to RD$127.60, premium gasoline was set at RD$138.80 and diesel was put at RD$92.30. Households will not have to pay RD$37.19 per gallon of propane gas for cooking. A large, 100 pound, cylinder of cooking gas will now cost close to RD$1,000.00. The cost of fuels in the Dominican Republic has increased by between 48% and 55% over the course of the year, and crude oil has increased in price by 59%. According to Hoy newspaper, fuel prices have only risen between 10% and 11% when compared to last September 2004. However, the peso has appreciated significantly since then and the cost in dollars has almost doubled.
A report from the Materials Management Service was cited by the Ministry of Industry and Commerce. The report stated that the effects of Katrina on oil production in the Gulf of Mexico has caused a 40% drop in oil supplies, forcing the United States government to release strategic reserves to make up for the loss.