The Dominican Republic spent US$251.3 million more last year than the previous year. The 17.8% increase in the oil bill came in spite of lower purchases caused by the economic recession at the beginning of 2004. The Central Bank report lists a US$9.40 increase in the cost of oil as the main cause of the higher bill, yet the total volume decreased by over 10%.
According to the Central Bank numbers, oil prices for 2004 averaged $39.60, a 31.1% increase over the 2003 averages. In monetary terms the government spent US$1.67 billion for oil products in 2004, against US$1.42 billion in 2003. The current increases in the world prices for oil do not bode well for the Dominican economic recovery, although the nation does purchase it oil from Venezuela under more favorable conditions. Long term estimates for petroleum prices place them in the US$40-45 range for 2005 and the US$35-$40 range in 2006.