Gasoline and diesel rise up to 3 pesos: the subsidy stays in place

Filling the tank will cost a bit more next week. The Government ordered an adjustment in the prices of four fuels for the period August 8-14, with increases of 2 and 3 pesos per gallon, while keeping the subsidy active to soften the blow.

Premium gasoline and premium diesel rise 3 pesos; regular gasoline and regular diesel, 2 pesos. To sustain the Anti-Crisis Plan, the State will allocate RD$931.79 million in subsidies.

Why it rises, again

The reason is the same as in recent weeks: the geopolitical conflict between the United States and Iran keeps making processed fuels more expensive. Although WTI crude averages about US$80, refining margins in the US have soared, and that cost is passed on at the pump.

What it means on the street

Every fuel increase has a domino effect: food transportation gets more expensive, running a corner store or public car costs more, and it ends up pressuring inflation — just as the Central Bank celebrated the CPI drop to 5.47%.

The partial relief is the subsidy: without it, the increases would have been larger. The question lingering is how long the State can sustain that cushion if the barrel stays tense.

The key figure

RD$931.79 million in subsidies this week. That is the price the Government pays so the oil rise is not fully felt in your pocket.