Dominican Refinery Says Guyana Oil Deal Could Lower Fuel Prices

The head of Dominican state refiner Refidomsa says a Guyana oil project could eventually bring down fuel prices in the Dominican Republic, though not soon.

Samuel Pereyra, president of the Dominican Petroleum Refinery (Refidomsa), said Wednesday that the partnership agreement between the Dominican Republic and Guyana could help lower fuel prices in the country. He explained that the project involves exploring an oil well in the South American nation, where Refidomsa participates as a partner of the Dominican State in a company linked to the Guyanese government. The exploration is in an early phase.

Pereyra was clear that results will not come right away. "These projects are long-term and will not arrive immediately, but it is an important step that could impact prices," he said. For the official, the initiative is a strategic step toward strengthening energy security and reducing dependence on imports.

That dependence is significant. Pereyra said Refidomsa can refine gasoline, diesel and jet fuel, but currently processes about 30,000 barrels a day, while national consumption exceeds 140,000 barrels daily. That gap forces the country to import most of what it uses, at prices tied to international markets. In this context, the Guyana agreement could open a path to lowering those costs in the future.

The official also highlighted the government's fiscal effort to keep rising international oil prices from fully passing through to consumers. He said the fuel subsidy is projected at roughly RD$50,000 million, resources that, he said, represent a sacrifice aimed at protecting household finances and keeping prices stable.