The Dominican government should apply a series of measures aimed at reducing the consumption of energy and hydrocarbons in the country and to guarantee the supply of food, if the Russian-Ukrainian conflict and high oil prices continue. Petroleum in international markets.
That’s how they considered it Raphael Espinal and Anthony Ciriaco, coordinator of the Economics career at the Technological Institute of Santo Domingo (Intec) and vice-dean of the Faculty of Economics at the Autonomous University of Santo Domingo (UASD), respectively.
Espinal indicated that the government has to try to make a savings plan in terms of the oil bill, which he warned could reach more than 6.5 billion dollars for this year, “because apparently oil prices Petroleum They’re not going to shrink.”
“I think that the country should establish some type of measure, in the event that this occurs (the increase in the cost of crude oil is prolonged), to reduce the working hours and activities in schools and colleges, to lower the consumption of electrical energy ”, He suggested.
The economist noted that an increase in Petroleum above 100 dollars would also force the State to reduce working hours in public administration and raise public awareness about energy saving.
He declared that, in the same way, if the armed conflict It would be necessary to streamline the processes of installing mass transportation corridors to reduce fuel consumption and the number of vehicles that travel in the city.
“In the case of raw materials, such as corn and wheat, which are sensitive, I think that the government should maintain a policy of subsidies, not so much for industrial producers, but rather for the poorest families through the social programs. Likewise, in the agricultural sector, try to remove the effect that the increase in the price of transportation may have on these products, subsidizing some, ”he explained.
Regarding tourismexplained that there is very little that can be done, because the effect that this is going to have on the sector is significant, since Russia and Ukraine are two of the main emitters of tourists to the country.
“The Ministry of Tourism has to try to move quickly to centralize its actions towards other origins in Europe itself, but the country has little flexibility in the effects that this can have on tourism. Not only Ukraine and Russia are affected, but also travel from that continent,” he added.
For the academic, the review of the macroeconomic framework is not only necessary because of the Russian-Ukrainian situation, but also because of the tendency that the inflation remain high during 2022, which forces us to review this year’s budget.
Meanwhile, the vice-dean of the Faculty of Economics of the UASD considered that the government needs to continue promoting national production, affirming that essential products, such as corn and wheat, are grown in Ukraine and Russia, for which could affect poultry and bread production in the country.
Ciriaco suggested developing a “broad” food supply program based on popular sales and farmers’ markets.
Likewise, he declared that other rationalization measures should be applied in the use of energy and fuels in the public sector. He argued that the conflict will have repercussions throughout the supply chain, not just the fuelsbut also in the electricity sector.
“The government will have to continue subsidizing the increase in fuels. A large part of the sovereign bonds that go to budget support will have to be used to continue subsidizing, in a targeted manner, the fuels”he added.
Ciriaco understands that the government, given the situation, will have to prepare a supplementary budgetbecause in the 2022 budget the price of the Petroleum it was projected at $62 a barrel “and it’s practically above $90.” “We’re talking almost $30 more.”
