2013News

Fuel subsidies eat up RD$3.2 billion

In just a year and nine months, the state has spent RD$3,222,809,331 on delivering 76,450,000 gallons of subsidized fuel to public transportation drivers, with no sign of any improvement in the services that they provide to the public. A group of transportation business owners have benefitted enormously from this tax break. They receive around 3,350,000 gallons of tax-free regular diesel fuel each month. The situation is caused by the drivers using the issue of the fuel subsidy as a way of putting pressure on the authorities, when, at the mere mention of withdrawing it, they threaten to halt transportation and increase their fares and cargo rates.

In order to increase the pressure, the transportation unions hold wildcat strikes at peak hours, causing chaos for thousands of commuters. After the mess there is always a process of talks and the transport unions get what they want and continue to be the beneficiaries of the compensation, which began “temporarily” in 2007 in order to prevent a fare increase. According to the Ministry of Industry and Commerce, in 2011 the government delivered 33,185,000 gallons of regular diesel (beginning that March) and in 2012, the number grew to 43,265,000 gallons. According to these figures, from March to December 2011 they spent RD$1,352,716,782 and then for 2012 the resources increased to RD$1,870,000,000, equal to an increase of over RD$500,000,000 in one year. On average a sum of RD$155,800,000 is spent each month on subsidizing the regular diesel fuel for the truck and bus drivers.

www.diariolibre.com/noticias/2013/03/04/i373739_subsidio-combustible-choferes-consume-rd3-mil-222-millones-los-fondos-del-estado.html