The government announced a reduction in the prices of gasoline and gasoil. Unleaded gasoline will sell for RD$28.79, down from RD$30.79 and RD$26 in December 1996, when the Fernández government significantly increased prices to reflect higher international fuel costs. Leaded gasoline is down to RD$23.40 from RD$24.70 and RD$20 in December 1996. Gasoil dropped to RD$13.60, from RD$14.60 whereas it had sold for RD$13.70 in December 1996. Beyond the additional income the fuel tax represents, the Fernández administration had delayed a decrease in the price of fuel fearing an increase in consumption which would force an increase in fuel imports required of the government. Press reports indicate that gasoline prices have dropped about 30% in the past three months, reflecting a decline in demand from Asian countries. In the December 1996 resolution that increased gasoline prices, the government promised to review these prices and lower them, depending on the international market. The president of Shell had suggested that the government reduce the price of unleaded gasoline in order to motivate an increase in the consumption of this fuel, which is better for the environment. President Fernández dropped the price of unleaded RD$2.00 and the price of leaded RD$1.30, which could bring about an increase in consumption of unleaded gasoline.
