2004News

Fuel shortages update

The newspapers report a slight amelioration in the diesel shortage that has affected consumers over the last few days, with the arrival of a tanker with 5 million gallons of the fuel. The Dominican refineries had been rationing diesel (gasoil) at a time of increased demand; extended power cuts have meant that power back-up generators were needed for much longer periods than usual. Regular gasoline shortages are set to continue until the weekend at least, as yesterday again saw long lines of vehicles at gas stations. Industry & Commerce Minister Sonia Guzman admitted yesterday that a lack of hard currency was a factor, but that it has been overcome. Guzman denied there was a risk that tankers would turn back due to non-payment. An industry insider revealed that the problem goes back to December, when the government forced the exchange rate to RD$35 to US$1 for purchases and the refinery had to make purchases at RD$50-US$1, creating a major deficit that interrupted the flow of fuel purchases. The problem will reportedly be solved with the gradual extension of the difference to consumers, as fuel increases in the following weeks.