Premium gasoline at RD$341.10: the cost of the fuel subsidy

Filling the tank costs more, but less than it would without state help. In the week of August 8-14, the Ministry of Industry, Commerce and Mipymes (MICM) raised three pesos on premium gasoline and premium diesel, and two pesos on regular gasoline and regular diesel: premium ended at RD$341.10 per gallon.

This week’s prices

• Premium gasoline: RD$341.10 (up 3 pesos).
• Regular gasoline: RD$304.50 (up 2 pesos).
• Premium diesel: RD$293.10 (up 3 pesos).
• Regular diesel: RD$256.80 (up 2 pesos).
• LPG: RD$135.20, unchanged: this year’s exception.
• Natural gas: RD$43.97 per cubic meter.

Why the barrel rises

The international crude price spiked because of the war in the Middle East — the conflict between the United States, Israel and Iran — which raised uncertainty about supply and made hydrocarbon shipping more expensive. The Dominican Republic imports almost all the fuels it consumes, so volatility reaches the pump quickly.

What containing the increases costs

Between January and August, premium gasoline has accumulated 51 pesos of increase (17.6%) and premium diesel another 51 pesos (21.1%); regular gasoline and regular diesel add 32 pesos each. So the escalation does not fully hit the pocket, the Government has allocated more than RD$22 billion in subsidies so far this year, it reported in July.

The key figure

51 pesos more per gallon of premium gasoline since January: the cost of a distant war paid at the gas station, which the State tries to cushion with billions from the budget.