President Luis Abinader announced that the government plans to allocate approximately RD$50 billion in subsidies by the end of the year to curb fuel price increases amid international instability
SANTO DOMINGO.– President Luis Abinader announced this Thursday that the government will keep fuel prices frozen until January 7, 2027, provided that the subsidy intended to prevent price increases does not exceed RD$1.5 billion per week.
The president provided the information during a meeting with representatives from various productive sectors of the country, convened to address the economic situation, price behavior and the repercussions of the international crisis on the Dominican market.
"To also bring peace of mind to the Dominican people, we have decided to keep fuel prices stable until January 7, 2027, as long as that subsidy does not exceed 1.5 billion pesos per week," Abinader said.
Subsidies would reach RD$50 billion
The head of state explained that the authorities have made an economic effort to contain the rise in oil derivatives, whose behavior in international markets continues to generate concern.
In that regard, he indicated that government projections include allocating approximately RD$50 billion in fuel subsidies by the end of 2026.
He also specified that during the previous week the amount allocated to this mechanism totaled RD$1.31 billion, an amount lower than the limit established to sustain the measure.
"Last week it was 1.3 billion, 1.31 billion, to be exact," he pointed out.
Abinader reiterated that the announced freeze will be conditional on the resources needed to compensate for variations in international prices not exceeding RD$1.5 billion per week.
International crisis puts pressure on prices
The ruler expressed his concern about international economic instability and the behavior of oil and its derivatives, due to the consequences they may have on productive activities and the costs of goods and services.
"We are in a very unstable situation, where there is no relationship between the price of a barrel of oil and the liquids, which are diesel and gasoline," he said.
Despite this scenario, he assured that the Government will make the necessary budgetary effort to keep prices stable during the announced period, subject to the established weekly limit.
Meeting with economic sectors
Representatives from industry, transportation, commerce and other economic activities participated in the meeting, with whom the president addressed concerns related to price behavior and the consequences of the international situation.
"Virtually all sectors that impact the economic life of our country are represented here," the president stated.
The announced measure seeks to contain pressures on the costs of transporting, producing and marketing goods, in a context marked by fluctuations in the international energy market.
However, the continuation of the freeze will depend on the state subsidy remaining within the limit of RD$1.5 billion per week established by the Executive Branch.
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