During their period of opposition, the leaders of the Modern Revolutionary Party (PRM) were the main critics of the “high” fuel prices maintained during the last administration and the formula used to calculate the amount to be paid. a liter of gasoline.
During the first four months of Luis Abinader’s government, however, one of the main criticisms of his management was due to the constant rise in fuel prices.
Of the 19 weeks completed on January 1, it was the responsibility of the government of Abinader to set fuel prices, 12 of which increased fuel costs.
The first of these increases was recorded in the week of August 29 to September 4, when premium gasoline presented a price of RD $ 209.30 per gallon, up from RD $ 2.70 per gallon, while regular gasoline traded at RD $ 199 , 90 per gallon, with an increase of RD $ 3.60 per gallon.
On that occasion, the Department of Industry, Trade and Mipymes (MICM) justified the price increase caused by Hurricane Laura’s passage through the United States.
After that week, there were three price cuts in the next, with Premium gasoline selling for RD $ 204.40, down five pesos while regular gasoline posted for RD $ 195.90, down four pesos.
For the next four weeks and consecutively, increases in fuel prices were recorded and on October 23, the price of regular gasoline was RD $ 198.30 and the premium of RD $ 208.30, which is an increase of three. and five pesos, respectively.
On that occasion, the MICM said the increases were due to the price of West Texas Intermediate, which registered a slight increase in those weeks after knowing inventories had fallen 1.63 million barrels. They also said gasoline reserves have declined 4.02 million barrels, indicating an increase in demand.
Between the weeks of October 17 and November 13, oil derivatives were in constant decline, reaching minimum prices of RD $ 200.40 per gallon (premium gasoline, RD $ 8 less) and $ 190.20 per gallon (regular gasoline, also at 8 pesos less ).
Since then, prices have continued to rise, with the MICM citing as reasons the optimistic euphoria of world oil market stocks, unleashed by the approval of Pfizer’s vaccine against the novel Covid-19 coronavirus, which has pushed up oil futures prices, by an average increase of US $ 1.65, equal to 3.8% over the week and also the start of massive vaccinations against the deadly virus in various parts of the world.
The latest of the justifications put forward by the Department argued that there was a “global uncertainty” as a result of the new form of Covid-19 discovered in the UK, which has been the subject of criticism and ridicule by social network users.
The constant price increase over the past seven weeks meant that regular gasoline RD $ 203.90 and premium gasoline RD $ 217.20 amounted to an increase of 13 and 17 pesos respectively.
“Ito’s formula”
The Secretary of Commerce, Víctor “Ito” Bisonó, is best known for the price hike, since as a deputy he questioned the formula used to implement fuel prices and published a video in which he applied some exercises showing that they were “cheaper ” should be. The video and the exercises recorded there were referred to by the population as the “Ito Formula”.
However, when criticized, the former lawmaker assured in October that he had never promised to lower or change fuel taxes, explaining that with the video he made with ‘his formula’ he wanted to give what he wanted to to know what has been done with that 48 percent tax that is levied on the liter of gasoline.
‘I said, you pay 48 percent tax, what do you do with your money. I did not promise to lower or change the percentages of the law that make up together, because I was a legislator for 18 years because he is not a minister who changes them, ”said the minister during a participation in the Today program broadcast by Color Vision, channel 9.
At the time Abinader assumed the Presidency of the Republic, the gallon of premium gasoline was RD $ 206.60 and currently it is RD $ 217.20, representing an increase of 11 pesos in four months of management.