Fuel Subsidy Tops RD$1,294M Weekly, Shielding Punta Cana Costs

Every gallon of optimal diesel sold in the Dominican Republic carries a subsidy of RD$101.91, the highest in the current pricing scheme. That figure explains why the government allocated another RD$1,294.5 million solely for the week of September 5 to 11, according to the Ministry of Industry, Commerce and SMEs (MICM).

For operators in Punta Cana and Bávaro, the freeze has immediate practical consequences. Diesel fuels backup generators, staff shuttle buses, hotel supply chains and food distribution networks. Keeping the pump price static prevents those costs from cascading into room rates, payroll pressures and consumer prices across the tourism corridor.

Frozen prices remain unchanged: regular gasoline at RD$310.50 per gallon, premium gasoline at RD$341.10, regular diesel at RD$262.80, optimal diesel at RD$293.10, LPG at RD$135.20 and natural gas at RD$43.97 per cubic meter. These are the same values set on June 13, when the government announced a 90-day price freeze under what it called the Anti-Crisis Plan, according to MICM.

International conditions are pushing in the opposite direction. The cost of refining WTI crude into diesel rose from roughly US$25.95 per barrel to US$75.65 as of August 31, with peaks reaching US$114 during that period, per MICM data. A retention of up to 8 million barrels per day at the Strait of Hormuz distorted the Import Parity formula and drove refined diesel costs to nearly US$110 per barrel in early September.

The government continues to absorb the gap. Per-gallon subsidies stand at RD$94.31 for regular diesel, RD$42.68 for regular gasoline, RD$24.12 for premium gasoline and RD$20.31 for LPG. Year-to-date, the accumulated total exceeds RD$30 billion.

Only four products received upward adjustments this week. Avtur rose RD$12.28 to RD$303.50 per gallon, kerosene climbed RD$13.50 to RD$343.20, fuel oil #6 gained RD$1.47 to RD$167.73 and fuel oil 1%S increased RD$1.43 to RD$197.41. Avtur matters directly for aviation operations at Punta Cana International Airport, which handles the bulk of tourist arrivals to the region.

The average weekly exchange rate used in the calculation was RD$58.85 per dollar, based on Central Bank daily publications. Any further peso depreciation would raise import costs and add pressure to a subsidy scheme that already surpasses RD$30 billion annually.