even though , the Market rate, that DR goes by, has Drop?

http://www.noticiassin.com/Noticiassin/Details.asp?id_article=24911

16/09/2008 10:24:52 P.M. | GASOLINA
Combustibles no bajan en proporción al petróleo


En noviembre del año pasado el petróleo se cotizaba al mismo precio que en la actualidad. Pero la variación en los costos de los combustibles no se asemeja a la caída del crudo.


SANTO DOMINGO,-En los últimos dos meses el precio del petróleo ha bajado 56 dólares con 12 centavos; sin embargo, los combustibles no han caído en la misma proporción.

Noticias SIN tomó como referencia los precios de las gasolinas para hacer una relación de los montos actuales.

En noviembre del año pasado el petróleo se cotizaba al mismo precio que en la actualidad. Pero la variación en los costos de los combustibles no se asemeja a la caída del crudo.

Por ejemplo en la semana del 12 al 18 de noviembre de 2007 la Secretaría de Industria y Comercio registró precios en la gasolina Premium de 122 pesos y la regular a 111.90.

En la actualidad el precio de esas gasolinas es de 196.70 la Premium y 187 la regular. Según cálculos hechos por el economista Hanley Hebrard las gasolinas debieron haber bajado entre 30 y 35 pesos, tomando en cuenta que las mismas tienen impuestos fijos de 59 y hasta 62 pesos.

El economista dijo que la República Dominicana es uno de los países que vende los combustibles más caros en la región.

En julio pasado el precio del petróleo llegó a su precio máximo 147 pesos por lo que ahora algunos ciudadanos reclaman que las rebajas se comiencen a efectuar.
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http://dr1.com/#7 {UPDATE)

Decline in oil prices not trickling down
While the government has been quick to pass the oil price increases to consumers, the opposite is not the case. El Dia reports that although the price of oil has dropped by US$55 a barrel in the past seven weeks, a gallon of regular unleaded gasoline has only dropped a mere RD$9. Contradictorily, the price of a gallon of propane has been increasing, in what is perceived as the prelude of the elimination of the propane subsidy. The petroleum law establishes that local prices will float according to international market prices. That means prices that float up when oil prices rise, and they should float down when oil prices decline.

In January, with petroleum costing US$88, the local price for a gallon of gasoline was RD$155 the gallon. By March, a barrel of oil was selling for US$99 and locally, gasoline was priced at RD$167. In June, with oil at US$128, the price was RD$191. When a barrel of oil reached US$147, a record in July, the gallon of gasoline sold for RD$197. Regular gasoline is selling for RD$187 this week.
A report in Diario Libre also looks into the situation, explaining that gasoline is costing RD$31 more than in February, when the international oil price was at the present level. During the week of 16-22 February, the Ministry of Industry & Commerce reported a price of RD$156.30, with the international fuel price at US$100.

The government is raking in the difference, says Ramon Alburquerque, a PRD opposition spokesman and expert in energy matters. He said that now with the barrel at US$92, regular gasoline should be selling for RD$110. "The government is reaping the profits, because if it gets hold of RD$70 per gallon, in addition to taxes, and 240 million of gallons are consumed per year, in a year, it would have made RD$17.7 billion," he said. He estimated the government is making at least RD$48 million a day for failing to pass the difference in prices to consumers.
Superintendent of Banks Rafael Camilo told El Dia that the drop in oil prices means US$150 million in savings for the government.

Central Bank governor Hector Valdez Albizu says the declining prices mean less expenses for the government, not savings. He estimated that the government would need to spend US$652 million less, which is positive for the economy.
El Dia said the government is ignoring public complaints about the high price of fuel.

Well, besides the fact that in the DR we get robbed for everything, in "theory" the prices of the gasoline are not exactly in the same timeline as the ones for oil, since gasoline is a refined product that had to be shipped, then refined and then distributed. so the gas you're using today could have been refined 1-2 months ago.

Anyways, I agree, the prices didn't fall in the same manner as the oil did.

dear DaniDR,

You are right, but could you or someone else explain to me why then is it that they increase the prices at the moment the USA raised their prices?2nd could you tell me why don't the Dominican republic wait 2 month before raising the prices if that is the case.3rd Why do they tax the fuel so much and where is all that money going too or to whom is it going to. last but not least We as Dominican are truly so dumb that we take all this crap with out retaliation on a peaceful way of course. Dani if you have answers please enlighten me please. OH let not get in the electricity issue neither. thanks

It is an excellent idea to keep gas prices high now the public has got used to the new prices as at the moment all oil must be imported and paid for on credit. The government is sensible in reducing the price of diesel so the nomal bus mode of transport does not get too expensive.
Those who must travel by car can convert to LPG that costs far less per gallon to import. Others can use an electric bicycle, bus or new underground.
Got it?
S

Well, if I'm not wrong, the prices of gas in the DR are dictated by:
- The average price of crude oil and refined gasoline in the Gulf.
- The exchange rate of the US$ vs RD$.
- The presence of any political event nearby.