[pMJWFoAWD]

To reflect the $85 per barrel crude oil on the international markets?

Right now the price per gallon is about $RD214. Doesn't make any sense-should be much lower between $RD155 to $RD175 to reflect the declining price in Crude.

Who is making off with the difference or does it reflect inventories being burned off that are at higher price levels?

[joOEMcheapSOFTWARE]

Forever and the government are my best guesses. I did see a rumor that prices might go down, it actually might happen, but forever is still my final answer.

[pMJWFoAWD]

Forever and the government are my best guesses. I did see a rumor that prices might go down, it actually might happen, but forever is still my final answer.

Looks like they are keeping the difference to cover those IMF deficit payments.

[BliliBoopsy]

In yesterdays DR1 news

Fuel prices may drop

The Minister of Industry and Commerce, Manuel Garcia Arevalo, said yesterday, Tuesday 6 June that fuel prices will drop by between RD$4 and RD$6 over the next few weeks.

He said that it was not true that fuel prices would increase after the elections, and was hoping that the decrease in the price of crude at the international level should trickle down to fuel prices and the end user.

Speaking to journalists while handing over the George Arzeno Brugal prizes for Industrial Journalism, he explained that the price of crude and the price of its derivatives were two different things. However, he said that the prices we have at the moment are based on a barrel of petroleum costing 100 dollars, as quoted in Listin Diario.

Matilda

[PypeMaypetasy]

Looks like they are keeping the difference to cover those IMF deficit payments.

And for that reason the "formula" is a state secret. Unless there is political pressure (there is none, elections are over) the price will not go down.

[BliliBoopsy]

In yesterdays DR1 news

Fuel prices may drop

The Minister of Industry and Commerce, Manuel Garcia Arevalo, said yesterday, Tuesday 6 June that fuel prices will drop by between RD$4 and RD$6 over the next few weeks.

He said that it was not true that fuel prices would increase after the elections, and was hoping that the decrease in the price of crude at the international level should trickle down to fuel prices and the end user.

Speaking to journalists while handing over the George Arzeno Brugal prizes for Industrial Journalism, he explained that the price of crude and the price of its derivatives were two different things. However, he said that the prices we have at the moment are based on a barrel of petroleum costing 100 dollars, as quoted in Listin Diario.

Matilda

[pMJWFoAWD]

Forever and the government are my best guesses. I did see a rumor that prices might go down, it actually might happen, but forever is still my final answer.

It will be interesting when Crude Oil is $50 or less per barrel on the international markets and the price per gallon is still over $RD200.

[yqpY4iw6]

Like I said in another post on another thread: West Texas Intermediate is the benchmark oil for indexing Dominican gasoline prices. In 2010 the WTI was about where it is today, and prices were 50-60 pesos less per gallon. Go figure.

What I have heard on the street is that the government is using the money to pay pay and pay...they have no credit and no money. RD$50 billion in debt right now...which is nothing for Bill Gates or Slim Helú, but the DR does not own Microsoft or Claro...


HB

[VZF74G0M]

Someone has to pay for the fuel that goes into all those "government vehicles" but also take into account how many taxes they have on a gallon of gas. Ever fly out of the DR on a really cheap ticket? Only to find out that you paid more on taxes than the actual airfare? Same goes for fuel. Plus they figure if we're willing to pay RD$227 or RD$214 then why reduce. Has anyone felt the savings when they reduced the price by 2 or 3 pesos over the weekend?

[Shiplyopidomi]

Your forgetting one thing, my cousin works for an Oil Company in Qatar and i frequently ask him how come a barrel of crude costs $89 and when i try to fill up my car it costs me $70 why can't i just buy the barrel of crude instead since there is a huge difference. The answer is simply this depending on the country and the agreement they have with Oil producing firms, we keep forgetting that crude (Black Substance); is the raw material they then process that into Petroleum which is Light Pink in color & LPG. Therefore we are paying the costs to refine the crude into Super Petrol, Jet Fuel, and D2-Diesel. Then there is the line of credit some countries pay depending on their agreement with the Oil companies we also have Loans countries owe these Banking Giants such as IMF, World Bank that determines the price they are places were they pay 50 cents U.S per liter and they are still complaining.

[BarBoss]

A minimum of 6 months is needed to reflect changes in the market to the consumer, and then the price of crude will have gone back up.

[Kilsimpaile]

It all depends on whether the admin is long or short vs Chavez inventory!

[rassedgesse]

HB is correct. There is no real connection to the price of crude and the price of finished product in the DR. Fuel is a huge cash cow for the DR gubmint, so they will keep the price at the level that maximizes revenue.

Besides, the DR imports finished product, not crude.

[Phlkxkbh]

CB writes: HB is correct. There is no real connection to the price of crude and the price of finished product in the DR. Fuel is a huge cash cow for the DR gubmint, so they will keep the price at the level that maximizes revenue.

Besides, the DR imports finished product, not crude. -----------------------------------------------------------------------------

Are you sure about them not importing crude. The refinery is there for a reason.

[PypeMaypetasy]

Besides, the DR imports finished product, not crude.

Both is correct, the DR imports crude and finished products. In the last years the import of finished products increased and less crude was imported since the refinery cannot not keep up production with the fast increasing demand.