RD$17 billion takes the fuel subsidy

The subsidy that the Dominican government maintains for fuels, to avoid charging more abrupt increases to consumers, has led it to assume commitments for RD$17,016 million in five months.

For the week of June 4 to 10, 2022, it will assume another RD$1,355 million as a subsidy for fuel. In this way, according to the Ministry of Industry and Commerce.

Premium gasoline will continue to be sold at 293.60 pesos per gallon and regular gasoline maintains its price at 274.50 pesos per gallon. Likewise, regular diesel oil remains at 221.60 pesos per gallon, optimal diesel oil will continue to be dispensed at 241.10 pesos per gallon, avtur at 298.91 pesos per gallon and kerosene will remain at 338.10 pesos per gallon.

Fuel oil #6 maintains its price at 192.11 pesos per gallon and fuel oil 1%S will continue at 211.77 pesos per gallon.

In addition, the price of liquefied petroleum gas (LPG) will remain at 147.60 pesos per gallon and natural gas will continue to cost 28.97 pesos per cubic meter. The weekly average exchange rate is RD$55.28 from the Central Bank’s daily publications.

The Deputy Minister of Internal Trade, Ramón Pérez Fermín, in an analysis of the international context of prices, said that along with the well-known fact of the war in Ukraine, increasing the price of oil, is added the alarming report that in the United States There has been a significant and unexpected decrease in oil inventory reserves of 5,068 million barrels, much higher than the estimated decrease of 1,350 million barrels.

“All this keeps oil always on the verge of 115 dollars, putting pressure on the prices of derivatives, in turn impacting the markets of non-importing countries, as is the case of the Dominican Republic,” he said.

According to his calculations, LPG must have increased by more than 10 pesos per gallon; Premium Gasoline more than 83 pesos per gallon; while Regular Gasoline had to do it in almost 90 pesos; Regular Diesel almost 95 pesos and Optimal Diesel 90 pesos per gallon.

explanations

“This week the Government has decided to accept Decree 625-11, assuming 1,355 million pesos, preventing these increases from occurring and impacting the pockets of Dominicans,” he reiterated. President Luis Abinader promised in March to subsidize fuels so as not to affect consumers, as long as oil was in the range between 85 and 115 dollars a barrel.

Crude closed with a rise of 1.7%, costs US$118.87

The price of Texas Intermediate Oil (WTI) rose 1.7% yesterday and closed at 118.87 dollars a barrel, a gain that occurs despite the higher-than-expected increase in monthly production announced by the OPEC+ alliance the day before.

At the end of operations on the New York Mercantile Exchange (Nymex), WTI futures contracts for delivery in July added 2 dollars compared to the previous close.

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