GOVERNMENT ANNOUNCES FURTHER REDUCTION IN FUEL PRICES

Effective Friday November 21, 2008, Dominican consumers will be paying less to fill their gas tanks, following Government’s decision to drop prices in keeping with the fall in price on the international market.

Motorists will now pay $10.05 for a gallon of gasoline, down by $1.96; $10.76 for diesel and $9.57 for kerosene.

 

The price of gasoline was reduced by 16.3% or $1.96 per gallon below the previous level of $12.01, diesel decreased 11.9% or $1.46, while kerosene dropped by 15.2% or $1.71. The cut in fuel prices comes as a result of recent declines in world oil prices, which are down about US$96.20 from an all-time high of above US$147.00 a barrel in mid July.

It is the fifth time the government has cut fuel prices since prices increased in mid June.

 

On August 21, 2008, the government reduced the price of gasoline, diesel and kerosene by 3.1, 1.8 and 2.4 percent respectively, in an effort to bring some intermediate relief to consumers. The price of gasoline was reduced from $15.69 to $15.20 per gallon, diesel decreased from $15.97 to $15.68, while kerosene dropped from $14.87 to $14.51 per gallon. Prices were reduced again on August 28 to $14.68 per gallon, a 3.4% drop, for gasoline, while diesel was reduced to $14.58, and kerosene, used for cooking, fell from $14.87 to $13.47 per gallon. This price reduction came as oil prices continued its declining trend throughout the month of August.

 

World market prices continued to fall throughout September and new retail prices of $14.32, $12.98 and $12.89 per gallon, for gasoline, diesel and kerosene

respectively, was announced with effect from October 3, 2008. On October 24, consumers got another cut as a gallon of gasoline dropped by $2.31 from the previous level of $14.32 to reach $12.01. The price of diesel dropped to $12.22 and kerosene was reduced to $11.28.

 

The general public is being reminded that government continues to maintain a zero percent imposition of the customs service charge applicable on petroleum products, and has done so since March 31, 2008. If the 3% customs service charge were to be applied the current prices for gasoline, diesel and kerosene would, in fact be, $10.22, $10.98 and $9.80 per gallon, respectively.

 

Government wishes to assure the public that if the price of oil on the international market continues to fall, it will endeavor to pass these reductions on to the price at the pump.

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