Jochi Vicente, Minister of Finance, dispatched the information
the minister of tax authoritiesJochi Vicente, revealed that the government would make the necessary adjustments within the General State Budget for the year 2022in order to support the productive and social sectors in the face of the constant rises in oil prices that affect the local fuel market.
During a press conference at the Treasury headquarters, Vicente stated that “we we do not produce oiland we will have to address this situation this year”, after referring to the high cost reached by the oil barrel in the international market, which yesterday was located at the close up to 86.90 dollars. He indicated that “the issue of rising prices for Petroleum has a very negative impact, both for the economyas for public finances, because the Budget of the year 2022 was made taking as an assumption of 62.7 dollars a barrel, and currently it exceeds 86 dollars”.
He stated that “if the Government decides that it has to support the social and productive sectors, then it will have to make the necessary adjustments within the preposed approved, to achieve availabilities that allow this situation to be addressed.”
Learn more: Fuels continue to rise
He added that “just as we did in 2021, fulfilling below the loan level approved by the Government and achieving a lower deficit than that approved by the Congresswe will also do it in the year 2022.
The amount is consigned in the budget, in the item of expense”. While in these first three weeks of this current month, the Government has allocated RD$703.6 million for the purpose of not fully transferring the increase in fuel prices, due to the increase in oil on the international market, which the Texas closed yesterday at US$86.90 a barrel, an amount US$24.2 higher than that contemplated this year in the General State Budget for the year 2022, which is US$62.7.
Recently the president Louis Abinader He proclaimed that “it is impossible” to continue with the fuel subsidy, and that in the event that oil has a greater increase, money destined for this purpose by the country would have to be saved.
While the president of the National Association of Gasoline Retailers (Anadegas), Juan Matos Feliz, has predicted that “if the Government does not assume the increases caused by the increases in the cost of a barrel of oil, there could be increases in fuels that would exceed RD$30.00 per gallon”.
The Governor of Central Bank of the Dominican Republic (BCRD), Héctor Valdez Albizu, regarding the rise in oil prices, has expressed that it is necessary to keep checking its behavior, as well as inflation. On the subject, various sectors have expressed their opinion, as well as representatives of unions and civil society, who for the most part understand that the Government must do whatever is necessary to face the negative impact that the rise in oil prices may cause in the local market.
