Dominican government maintains fuel subsidies to protect the family economy
The Ministry of Industry, Commerce and MSMEs (MICM) announced that the Dominican Government has allocated an additional RD$1,294.5 million to subsidize fuel prices. This measure seeks to mitigate the impact of constant increases in petroleum derivatives in the international market, allowing Dominican consumers to maintain significant relief in their daily expenses.
For the period between September 5 and 11, the prices of the most consumed fuels, such as premium and regular gasoline, regular and optimum diesel, Liquefied Petroleum Gas (LPG), and Natural Gas, will remain unchanged. This decision is part of the Anti-Crisis Plan, which seeks to preserve the nation’s economic stability and protect the purchasing power of the most vulnerable sectors.
With the subsidy scheme implemented for this week, the Dominican State has exceeded RD$30 billion allocated to price containment so far this year, managing to absorb up to RD$101.91 per gallon in the case of premium diesel.
International context and specific adjustments
Instability in international prices has been driven by critical factors, such as distortions in the Import Parity formula (PPI) due to the withholding of supplies in the Strait of Hormuz. These events have drastically increased refining costs, affecting the price of refined diesel in global markets.
Despite the freezing effort on main fuels, some petroleum-derived products have experienced an upward readjustment for this week:
- Avtur: increase of RD$12.28 per gallon.
- Kerosene: increase of RD$13.50 per gallon.
- Fuel Oil #6: increase of RD$1.47 per gallon.
- Fuel Oil 1%S: increase of RD$1.43 per gallon.
Current prices (from September 5th to 11th)
- Premium Gasoline: RD$341.10 (no change)
- Regular Gasoline: RD$310.50 (no change)
- Regular Diesel: RD$262.80 (no change)
- Optimum Diesel: RD$293.10 (no change)
- LPG: RD$135.20 (no change)
- Natural Gas: RD$43.97 per m3 (no change)
For these operations, a weekly average exchange rate of RD$58.85 has been taken as a reference, in accordance with the records of the Central Bank. Alofoke Deportes will continue to report on the behavior of these economic indicators that directly impact the citizenry.
