Santo Domingo—Crees points out that high fuel taxes and legally established profit margins are the main factors behind this reality.
The Dominican Republic is the third country with the most expensive fuel prices compared to similar economies in Central America, according to the Regional Center for Sustainable Economic Strategies (Crees) in an article.
With the prices of both types of gasoline and optimal diesel, the country exceeds the Central American average; details and indicates that the Dominican Republic is only surpassed by Costa Rica and Nicaragua in the price of fuel.
CREES explains that despite the prices paid by the public, which include the decrease due to the subsidy that exists in the country, even considering the adjustments, the prices of premium gasoline, regular gasoline, and Optimal Diesel exceed the regional average in 15.3%, 14.2%, and 3.6%, respectively.
When explaining the high price of fuel, he specifies that high fuel taxes and profit margins established by law are the main factors behind this reality.
It indicates that, for example, for the week analyzed, January 22, 2024, taxes on premium gasoline represented 33.3% of the sales price, which places the Dominican Republic as the country in the region with the highest taxes for this type of gasoline.
Recommends that the tax reform proposal presented by CREES could represent a step towards a more balanced and favorable tax structure for Dominican society.
“This important tax transformation would contribute to reducing transportation costs, in addition to increasing citizens' disposable income. In this context, it is necessary to promote policies that encourage efficiency, competition and innovation in the marketing and production of fuels,” he states.
