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Estación de combustible en República Dominicana al atardecer, con surtidores y vehículos bajo un cielo cálido
Estación de servicio al atardecer en República Dominicana, en una semana de precios congelados con subsidio estatal. · Imagen generada para EPM

Dominican Republic freezes fuel prices with RD$1,516.5 million subsidy

The Dominican Government allocated RD$1,516.5 million in subsidies to keep essential fuels frozen from 31 October to 6 November 2026.

--- The context --- The Dominican Republic is using public funds to hold down pump prices. The Ministry of Industry, Commerce and SMEs (MICM) reported that the Government allocated RD$1,516.5 million in subsidies to keep essential fuels frozen from 31 October to 6 November 2026, despite increases in international crude and refined product prices. --- The facts --- The clearest case is liquefied petroleum gas. High LPG demand, associated with the arrival of the winter season, has driven up its price. Its real price should be RD$196.46 per gallon, but the Government is subsidizing RD$61.25 per gallon, equivalent to 45.31% of its current price, to keep it at RD$135.20 and avoid passing increases on to households, businesses, industries and urban transport. The official table leaves Premium Gasoline at RD$358.10 per gallon, Regular Gasoline at RD$317.50, Regular Diesel at RD$270.80, Optimal Diesel at RD$318.10 and LPG at RD$135.20. The average weekly exchange rate is RD$60.82, according to the Central Bank. In October, the average weekly subsidy stood at RD106.54 for Regular Diesel and RD108.07 for Optimal Diesel, and these measures have already cost RD$43,324 million so far in 2026. --- The positions --- The Government's position, expressed in the MICM provision, is that the subsidy prevents international increases from being passed on to households, businesses, industries and urban transport. The measure protects those who use LPG for cooking. The counterpart is the cost: RD$43,324 million so far in 2026 is a fiscal burden also paid by citizens. --- What remains unknown --- The provision covers only that week and does not announce what will happen afterwards. Nor does it detail how its continuation will be financed if international prices keep rising, or what margin remains when optimal diesel averages US$201.60 per barrel, amid low diesel production related to the Russia-Ukraine conflict. --- Unanswered questions --- How many more weeks can a weekly subsidy of RD$1,516.5 million be sustained without adjusting prices to the public? What will happen to LPG if its real price remains above RD$196.46 per gallon as the winter season advances? Will the Government present a gradual exit route from the freeze, or will it renew the measure week after week? --- EPM analysis --- The freeze buys immediate stability in exchange for a growing bill. While the real price of LPG is RD$196.46 and the public pays RD$135.20, the State absorbs RD$61.25 per gallon, and that absorption already totals RD$43,324 million so far in 2026. Its sustainability depends on variables the country does not control: winter demand, diesel production and international prices. 📌 EPM Take: In EPM's view, the RD$1,516.5 million subsidy fulfils its immediate function of protecting households, businesses, industries and urban transport from increases they did not cause, and that protection has concrete social value in everyday LPG use. But an anti-crisis measure that already costs RD$43,324 million so far in 2026 requires full transparency about its financing and a public explanation of how long it can be maintained, because freezing the price does not eliminate the cost: it transfers it to everyone's budget.
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