Fuels

Fuels will be in the news soon. President Abinader’s declarations on the impossibility of maintaining the subsidies indefinitely and the meeting held yesterday afternoon at the National Palace to discuss the issue, anticipate this.

It should be remembered that a few months ago the measure aimed at dismantling the subsidies that the Government assumed to help in the economic crisis caused by the pandemic was already prepared.

In 2021, the fuel subsidy exceeded RD$15 billion. The largest figure dedicated in one year to this chapter. Without fiscal reform, it was foreseeable that the Executive would decide to take this decision, which unfortunately, affects the entire productive sector and has a clear inflationary effect.

This has happened in a large part of the world, where fuel prices, and therefore energy prices, have caused prices to rise in ranges that have not been seen for years.

We will have to wait to know the adjustment to measure the effects on the Dominican economy in 2022.

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