Gasoline Prices Drop in Dominican Republic for Second Time This Year
The prices of premium and regular gasoline have fallen for the second time this year, following the slight increase in August. The increase in August saw a raise of one peso and 50 cents for premium gas and one peso for regular gas, which placed the cost of a gallon at RD$293.10 and RD$274.50 respectively.
Yesterday, the Ministry of Industry, Commerce and MSMEs (MICM) announced discounts of two and three pesos on gasoline, bringing the costs down to RD$290.10 for premium and RD$272.50 for regular gasoline. Additionally, other fuels have also seen reductions in their prices, with Avtur dropping by RD$8.28, Fuel Oil by RD$1.46, and Kerosene by RD$9.00.
Current fuel station prices stand at RD$180.98 per gallon for Avtur, RD$209.90 per gallon for kerosene, RD$156.21 per gallon for fuel oil #6, RD$169.06 per gallon for fuel oil 1%, RD$132.60 for LPG, and RD$43.97 per cubic meter for natural gas.
Analysis of fuel price behavior shows that the prices of hydrocarbons remained frozen during the first months of 2023 until there was a mid-May reduction. This was followed by another reduction in the week of the 13th to the 19th of the same month and a slight increase in the last week of July and first week of August. Additionally, price reductions were observed for regular diesel until June, followed by an increase in July and back to the starting price later. Optimal diesel has also had variable prices throughout the year.
Jet fuel (avtur) showed significant price fluctuations throughout the year, as did kerosene. Fuel oil also saw changes at the end of the year.
Crude oil values saw a drop due to the December festivities, with West Texas Intermediate (WTI) and North Sea Brent prices reflecting this. The US Federal Reserve’s decision to keep interest rates and prospects for future rate cuts also influenced crude oil values.
The Dominican government has mitigated the impact of fuel prices through subsidies, costing the state a significant amount. The government’s extraordinary subsidy took RD$263.4 million from the national budget until October.