2006News

Propane subsidy down 29%

The government had budgeted RD$2.8 billion for the propane subsidy in 2005, but ended up spending RD$4.93 billion, and still saved RD$2.0 billion in relation to 2004. The reduction was because the government established a fixed subsidy of RD$17.35 per gallon of propane, abandoning the policy of keeping the price at RD$25 pesos per gallon. Another cost-saving measure was to limit subsidized propane to domestic users and force the industrial and commercial users to purchase the gas at non-subsidized prices. To keep a close watch on the sales of propane and avoid abuses, the Ministry of Industry and Commerce created an elite team of inspectors called the Apaches to supervise sales at different distributors.