The new confrontations in the Middle East will increase the cost of petrol and drive inflation upwards, as reported in media worldwide. While seemingly far away, the war between Israel and Hamas will have a significant impact on the Dominican Republic.
During the Monday, 9 October 2023 routine press conference, President Luis Abinader said the government will budget a larger fuel subsidy at the onset of the war between Israel and Hamas.
“The first call I made on Saturday afternoon (when the clashes broke out) was to the Minister of Hacienda to prepare for a greater subsidy,” said President Luis Abinader.
The head of state specified that during the past year, the government allocated some RD$35 billion in subsidies to hydrocarbons to keep fuel prices stable and accessible to compensate for the situation created by the Ukraine War.
Likewise, the president of the National Business Council, Juan Celso Marranzini says that the price of petrol is a serious threat for productive sectors that will need to reorganize in case the new international conflict continues for a long time. He said the business sector is in close conversations with the government to decide on forthcoming actions.
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10 October 2023