The Executive power proposes to establish mechanisms for adjusting and capping fuel prices through the bill from hydrocarbons and, in addition, it proposes to modify the formula to determine the Import Parity Price (PPI).
According to the initiative, presented on February 28 to the Senate with the new methodology for setting fuel prices that would be established, cost elements based on efficiency criteria and best practices, could mitigate the impact of increases in fuel prices. prices of oil derivatives in the international market.
According to article 15 of that piece, the setting of fuel prices will have a “Price Adjustment Mechanism” to prevent the high volatility of the prices of crude oil and its derivatives from being passed on to consumers.
Taxes
Article 8 establishes that the Ministry of Industry, Commerce and Mipymes (MICM) will dictate every 15 days, through resolutions, the public sale prices that will govern for the fuels referred to in table 1 of that law. Refers to taxes by type of fuel established in national currency per gallon, which over the years have been adjusted according to the Consumer Price Index (CPI) published by the Central Bank. It states that they will reflect fuel prices in the international market and the exchange rate provided by the Central Bank. The resolutions would be published in a national circulation medium and must break down the elements that make up the retail price of each fuel, including taxes, marketing margins and temperature adjustment.
The former president of the Senate and author of Law 112-00 (in force), Ramón Alburquerque, revealed that the taxes set in that regulation, taking into account the current CPI, have been increased from 18 pesos for a gallon of premium gasoline at 96 pesos. The political leader proposes freezing the different taxes for each type of fuel and establishing an ad valorem tax, since for him that would be the only way to control the rises in the prices of fuels. hydrocarbons.
The politician from the official party (PRM) agrees with PLD senator José del Castillo Saviñón, who stressed that only by reducing taxes and marketing margins, or both, could fuel prices fall.
Victoria Yeb: will help control prices
But the perremeista senator Alexis Victoria Yeb, who chairs the Permanent Commission of Industry and Commerce in the hemicycle, highlighted that this law contemplates the elimination of exemptions to some sectors and believes that, if approved, it would help control fuel prices. He assured that this commission will carry out an in-depth study of this piece and will listen to all sectors.
I would change formula
The Executive power proposes to change the formula to determine Import Parity Price (PPI), adding in it to take into account the premium, the cost of intermediation, certification expenses, maritime losses, inventory costs, financial coverage for oil and its derivatives and difference instead.
exemptions
through the billthe Government would formalize its decision to dismantle the exemptions to the eight isolated electric generators, to which only in exemptions for the Selective Consumption Tax (ISC) to the hydrocarbons the State estimates it would stop receiving this year RD$18,626.6 million, 6.5% of the fiscal sacrifice for the year 2022.
