Government Rules Out Fuel Relief Package, Will Act Gradually

Finance Minister Magín Díaz says the government won't roll out a fixed plan against high international fuel prices and gives no date for regulatory changes.

The Dominican government will not implement a closed package of measures to address the impact of high international fuel prices. Finance and Economy Minister Magín Díaz explained this in response to a question from elDinero during the event "New Reality: The Dominican Republic Facing the Global Fuel Impact," held in Santo Domingo.

According to the official, uncertainty in global markets makes it hard to set a fixed set of actions for the coming months. Díaz said the government will keep making decisions gradually, depending on how the crisis evolves, and that it has already adjusted public spending, taken steps to raise revenue, and changed the fiscal deficit. "What we cannot do right now is a five-point recipe, because that is not reasonable given the uncertainty the world is facing," he said.

Díaz added that authorities are improving targeting programs to direct state assistance to the sectors most affected. Among the initiatives under review is a new bill for the hydrocarbons market, being analyzed by the Ministry of Industry, Commerce and MSMEs. The government is also working with the Inter-American Development Bank (IDB) on risk-coverage mechanisms and alternatives for setting fuel price rules. He warned, however, that regulatory changes will not happen immediately, as authorities want to identify the right conditions before proposing legislative changes or new market rules.

To justify the gradual approach, the minister pointed to favorable economic indicators despite the adverse international environment. He cited economic growth twice the Latin American average, inflation similar to the regional rate, and an external sector expected to receive more than US$50,000 million in 2026. He also highlighted remittances above US$1,000 million per month and tourism growing at double-digit rates. On employment, he said unemployment sits between 5% and 5.3%, and the economy created more than 137,000 jobs in the second quarter.

Díaz acknowledged that some sectors are struggling with higher fuel costs and global uncertainty. He stressed that fiscal and economic decisions will be made according to each moment's needs, without committing the government to a timetable of measures that could lose relevance amid new changes in the international landscape.