During their period of opposition, the leaders of the Modern Revolutionary Party (PRM) were the main critics of the “high” fuel prices that remained during the course of the past management and the formula used to calculate the amount a pay for a gallon of gasoline.
However, during the first four months of Luis Abinader’s government, one of the main criticisms of his management has been the constant rise in fuel prices.
Of the 19 weeks, which are due on January 1, which has been the turn of the Abinader administration to set fuel prices, in 12 of them fuel costs have risen.
The first of these increases was recorded in the week of August 29 to September 4 when premium gasoline presented a price of RD $ 209.30 per gallon, rising RD $ 2.70 per gallon, while the regular was quoted at RD $ 199.90 per gallon, with an increase of RD $ 3.60 per gallon.
On this occasion, the Ministry of Industry, Trade and SMEs (MICM) justified the increase in prices due to the passage of Hurricane Laura through the United States.
After this week, in all three there were reductions in prices, reaching the sale of premium gasoline at RD $ 204.40, a drop of five pesos while regular gasoline was placed at RD $ 195.90, with a drop of four pesos.
For the next four weeks and in a row there were increases in fuel prices and, for October 23, the price of regular gasoline was RD $ 198.30 and the premium was RD $ 208.30, representing an increase of three and five pesos, respectively.
On this occasion, the MICM said the increases were due to the listing of West Texas Intermediate, which recorded a slight increase in recent weeks after learning that inventories fell by 1,630,000 barrels. They also said they decreased gasoline reserves to 4,020,000 barrels, pointing to an increase in demand.
Between the weeks of October 17 and November 13, petroleum products were in constant decline, reaching minimum prices of RD $ 200.40 per gallon (premium gasoline, RD $ 8 less) and $ 190.20 per gallon (regular gasoline, also with 8 pesos less).
Since then and to date, prices have kept rising and the MICM has cited as reasons the optimistic euphoria of global stock markets in the oil market, triggered by the approval of the Pfizer vaccine against the new Covid-19 coronavirus, which has pushed up oil futures prices, with an average increase of US $ 1.65, equivalent to 3.8% over the week and also the start of mass vaccinations against the lethal virus in different parts of the world.
The latest justification offered by the ministry argued that there was “global uncertainty” over the new Covid-19 strain detected in the UK, which has been the subject of criticism and ridicule by network users. social.
The constant rise in prices over the last seven weeks has put regular gasoline at RD $ 203.90 and premium at RD $ 217.20, for an increase of 13 and 17 pesos, respectively.
“Ito’s formula”
The Minister of Commerce, Víctor “Ito” Bisonó has been the most notable for the rise in prices, as when he was acting deputy he questioned the formula used to implement fuel prices and published a video where he applied exercises that showed that they should be “cheaper.” The video and the exercises recorded there were referred to by the population as the “Ito Formula”.
However in the veire criticized, in October the former legislator said he never promised that he would lower or change the taxes charged on fuels and explained that with the video he made showing “his formula “what he was looking for was to make known what was done with this 48 percent tax levied on the gallon of gasoline.
“I said, you pay 48 percent in taxes, what do you do with your money. I didn’t promise that I was going to lower or change the percentages of law that make up, because I was an 18-year legislator because it’s not a minister who changes them, “was what the minister said during a participation in the program Today, broadcast by Color Vision, channel 9.
At the time of Abinader taking over the presidency of the Republic, the gallon of premium gasoline was at RD $ 206.60 and is currently at RD $ 217.20, representing an increase of 11 pesos in four months of management.