Since before the explosion war between Russia and Ukrainethe Dominican Government had on the agenda to execute measures to contain the increases in the products of the family basket, but after the battle came, the countries have had to act to contain the rise in fuel on an international level.
Less than 15 days after the attacks ordered by Vladimir Putin began, more than two thousand people between civilians and soldiers and 1.7 million displaced people have died within Ukraine; and internationally, oil prices have soared above the US$120 a barrel.
In his speech this Monday night, President Louis Abinader contextualized that when arriving at the Government, in August 2020, the barrel of oil was at US$45but already on Monday, March 7, it was US$119.
In this sense, the president announced a pack of 10 sizes in order to prevent the population from feeling the effects of inflation.
fuel will be subsidized taking as reference the price of West Texas Intermediate (WTI)that when it is above US$85 per barrel and below US$115, the Government will leave domestic prices unchanged at the level of March 4, 2022.
In the event that it exceeds US$115 a barrel, it will be transferred to domestic prices without including the ad-valorem tax.
This measure will apply for four months and the Government will assume RD$600 and RD$1,000 million weekly, stressed the president.
Similarly, it will increase the transport sector subsidy through the National Institute of Traffic and Passenger Transport (Input) to prevent drivers from increasing fares.
The Executive Branch will send a bill to the Senate to reduce import tariffs to 0% of the products of the basic basket, such asrefined oil, butter and margarine, powdered milk, edible fats, canned food, chicken, garlic, pasta, beans, flour, bread, pork and beef.
In addition, the Ministry of Industry and Commerce will subsidize for six months a 10% import of corn, wheat, soybeans, flour and vegetable fat.
That would imply an expense of DR$3 billion to avoid rising prices of products that use these inputs.
Abinader recalled that since he took over the administration of the State, it has increased by one 2% of GDP the amounts invested in social spending, which represents Additional RD$150 billion.
This money will serve to maintain subsidies to certain vulnerable sectors, through programs Get over yourself, Bono gas, expansion of rations in cheap dining rooms, Inespre’s popular markets and increase in direct sales warehouses.
Another initiative is the inter-institutional coordination between the Ministries of Finance, Industry and Commerce, Agriculture and the Directorates of Internal Taxes and Customs for the discussion and implementation of administrative measures that impact the retail prices of the products of the basic basket.
To avoid speculation, the application will be pushed “Fair Prices”to verify the costs of the family basket.
Abinader indicated that It will streamline the procedures and permits to avoid delays that endanger the continuous supply of goodsas well as investment permits that generate jobs
The Government will also give a grace of 6 months for payments to capital of the loans that have been granted by the Agricultural Bank.