Between January and April 1 of this year, the sacrifice that the government has had to incur for fuel, in order not to charge the increases to the consumer, totals RD$6,693 million.
Seven weeks have passed without variation in the prices of gasoline, diesel and liquefied petroleum gas (LPG).
In the first month of the year the debt assumed by the government with fuel importers was RD$1,247 million, in February RD$1,710 million, in March RD$2,696 million and this week RD$1,130 million.
On Monday, March 7, President Luis Abinader promised to subsidize fuel so as not to affect consumers with sharp increases, as long as oil was in the range between 85 and 115 dollars a barrel.
With this measure, which will have an initial duration of four months, the government reported that it would continue to assume a permanent minimum fiscal sacrifice of at least between 600 and 1,000 million pesos per week, which would be between 2,400 and 4,000 million pesos per month and between about 9,600 and 16,000 million pesos during its four months of application. With this week’s subsidy, the government incurs a larger subsidy than it said it would assume weekly.
Only avtur and kerosene will go up. The avtur increases RD$14.87 and kerosene RD$15.80. As calculated by the Ministry of Industry, Commerce and MSMEs, this action prevents increases in LPG prices of RD$21.61, in premium gasoline for RD$40.62, regular gasoline for RD$49.33, regular diesel for RD$84.14, optimum diesel for RD$ $73.58, and in natural gas for RD$7.25 per cubic meter.
For the week from April 2 to 8, 2022, the fuels will be marketed as follows: Premium gasoline will be sold at RD$293.60 per gallon, maintaining its price; regular gasoline at RD$274.50 per gallon and regular diesel at RD$221.60.
While optimal diesel is sold at RD$241.10 per gallon, avtur at RD$264.40 per gallon, up RD$14.87, and kerosene RD$300.70 per gallon, up RD$15.80. Meanwhile, fuel Oil #6 costs RD$192.11 per gallon, maintaining its price.
In the case of fuel oil 1%, its price is RD$211.77 per gallon, it remains at the same price.
Liquefied Petroleum Gas (LPG) will continue at RD$147.60 per gallon, with the same price, and natural gas at RD$28.97 per cubic meter, maintaining its price.
The Vice Minister of Internal Trade, Ramón Pérez Fermín, assured that “if we did not manage what the international market commands, we would have had to see an unprecedented increase.
Oil closed lower, but still high
The price of Texas intermediate oil (WTI) fell 1% yesterday and stood at 99.27 dollars a barrel, below the psychological barrier of one hundred, after members of the International Energy Agency (IEA) agreed to release more crude from its strategic reserves, and would continue to be affected by yesterday’s White House announcement to the same effect. WTI futures contracts for May delivery were down $1.01.
