During the period of opposition, the leaders of the Modern Revolutionary Party (PRM) were the main critics of the “high” fuel prices that were maintained during the last administration and the formula used to calculate the amount to be paid for a gallon of gasoline.
However, in the first four months of Luis Abinader’s rule, one of the main criticisms of his leadership was due to the constant rise in fuel prices.
From the 19 weeks, which were completed on January 1, it was the responsibility of the Abinader administration to set fuel prices, in 12 of which fuel costs increased.
The first of these increases was recorded in the week of August 29 – September 4, when premium gasoline was priced at RD $ 209.30 per gallon, rising RD $ 2.70 per gallon, while regular gasoline was traded at RD $ 199.90 per gallon, with an increase of RD $ 3.60 per gallon.
On that occasion, the Ministry of Industry, Trade and Mipymes (MICM) justified the increase in prices due to the passage of Hurricane Laura through the United States.
After that week, there were price reductions in the next three, with Premium gasoline selling for $ 204.40 RD, down five pesos, while regular gasoline was placed at $ 195.90 RD, down four pesos. .
For the next four weeks in a row, there were increases in fuel prices, and on October 23, the price of regular gasoline was US $ 198.30 and the premium of US $ 208.30, an increase of three and respectively , five pesos.
On that occasion, MICM said the increases were due to the price of West Texas Intermediate, which rose slightly in those weeks after learning that stocks had fallen by 1.63 million barrels. They also said that petrol reserves fell by 4.02 million barrels, which indicated an increase in demand.
Between the weeks of October 17 and November 13, oil derivatives were steadily declining, reaching minimum prices of $ 200.40 per gallon (premium gasoline, $ 8 less) and $ 190.20 per gallon (regular gasoline also , 8 pesos less).
From then until now, prices have continued to rise, and the MICM cited as reasons for the optimistic euphoria of world stocks in the oil market, triggered by the approval of the Pfizer vaccine against the new Covid-19 coronavirus, which raised oil prices in the future. average increase of 1.65 USD, equivalent to 3.8% compared to the week and also the start of mass vaccinations against the lethal virus in different parts of the world.
The latest justification provided by the ministry claimed that there was “global uncertainty” over the new strain of Covid-19 detected in the UK, which was criticized and ridiculed by social media users.
The steady rise in prices over the past seven weeks has placed regular gasoline at $ 203.90 and premium gasoline at $ 217.20, an increase of 13 and 17 pesos, respectively.
“Ito’s formula”
Trade Minister Víctor “Ito” Bisonó has been the most notable for the rise in prices, since he was a deputy he questioned the formula that was used to implement fuel prices and published a video in which he applied some exercises that showed that they should be “cheaper”. The video and the exercises recorded there were called by the population as “Formula Ito”.
However, when criticized in October, the former legislator assured that he never promised to reduce or change fuel taxes and explained that with the video he made, showing “his formula”, what he wanted to let me know what was done with that 48% tax levied on the gallon of gasoline.
“I said, you pay 48 percent in taxes, what do you do with your money. I did not promise myself that I would reduce or change the percentages of the law that I compose, because I was a legislator for 18 years because it is not a minister who changes them “, said the minister during a participation in the Hoy Same program, broadcast by Color Vision, channel 9.
At the time Abinader took over the presidency of the Republic, the gallon of premium gasoline was $ 206.60 RD and is currently US $ 217.20, an increase of 11 pesos in four months of driving.