Executive Power presents formula to establish fuel prices.
The Executive power deposited this Tuesday Proposal to amend the Hydrocarbons Law at National Congress. Between the modifications suggested by the Presidency of the Dominican Republic indicates that if the new version of this legislature is approved, the prices for fuel sales to the public will be established every fifteen days and not weekly as is currently the case.
Also, the new version of the law 112-00repeals the current article 10 that in the current one it is transitory and establishes a new one that indicates the elements of which the Import Parity Price (PPI) will be composed, which are the cost of acquiring the product according to daily prices; the cousin; the freight; maritime insurance; the cost of intermediation; certification expenses; bank charges; maritime losses; inventory costs; among others.
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Likewise, articles 12, 13, 14, 15, 16 and 17 are added, in the twelfth article a formula to calculate the price of fuels is clearly established. This is: PPI = FOB ± P + FT + SM + CI + GC + CB + PM + CIV + CF + CMT + DC + GAL.
Also, the new Law would order fuel import terminal operating companies to determine fuel volumes in the domestic market in US gallons at 15 degrees centigrade or 60 degrees Fahrenheit and that the equivalent of this adjustment be deducted from the official price of sale to the public set by the Ministry of Industry, Commerce and Mipymes.
In addition, a “Price Adjustment Mechanism” will be created to avoid the “High volatility” of oil prices. As well as the Fuel Price Stabilization and Compensation Fund to reduce the impact on the national economy.
