President Leonel Fernandez will be addressing the nation tonight at 10 pm on radio and television, during which he is expected to announce his decision regarding the propane gas subsidy. The President will state the government’s position regarding the subsidy. The threat that the subsidy might be removed is a major concern for the majority of Dominicans, who purchase LPG in 100 lb tanks or less at half the price of the cost were the subsidy to be removed. The Hydrocarbons Law contemplates the subsidy for propane gas for household use, but not for vehicular use. The reduction of the propane gas subsidy is part of the agreements originally reached with the International Monetary Fund (IMF), due to the high financial burden it represents for the government.
The agreement established that “LPG subsidies would be limited to RD$2.8 billion through the implementation of a program involving the distribution of up to 500,000 magnetic cards to poor households effective April 2005 (following completion of a census aimed at identifying these households).” The government has already distributed 75,000 of these ‘Solidario’ cards nationwide.