Dominican Republic grapples with rising fuel costs amid Middle East conflict

Dominican Republic's fuel prices have surged significantly in 2026, with premium gasoline and optimal diesel seeing increases of up to RD$51 per gallon by August. This rise, despite government subsidies, reflects the volatile international energy market, heavily influenced by the Middle East conflict involving the U.S., Israel, and Iran. The global tensions have created uncertainty in crude oil supply, driving up international oil prices.

“

We know that there have been significant losses of homes and properties. We also know that some people were trapped when conditions changed rapidly.

At the start of the year, fuel prices remained stable. Premium gasoline cost RD$290.10 per gallon, regular gasoline RD$272.50, regular diesel RD$224.80, and optimal diesel RD$242.10. Liquefied Petroleum Gas (LPG) was priced at RD$137.20 per gallon, and natural gas at RD$43.97 per cubic meter. These prices were maintained through February, with the government absorbing external pressures through subsidies.

The situation shifted dramatically in March. Following the escalation of conflict between the U.S./Israel and Iran, international oil markets began to show signs of fear regarding crude oil supply disruptions and increased transportation costs. Highly dependent on fuel imports, the Dominican Republic quickly felt the impact. The government announced a RD$5 per gallon increase for premium and regular gasoline, and both types of diesel, between March 14-20, citing "extreme volatility." Premium gasoline rose to RD$295.10, regular to RD$277.50, regular diesel to RD$229.80, and optimal diesel to RD$247.10.

“

Air evacuations are underway for people who remain isolated behind the fire perimeter.

However, the actual increase passed to consumers was far less than the international market dictated. To cushion the blow, the government subsidized RD$1,189.8 million in fuel costs that week alone, more than double the previous week's subsidy. This marked a turning point, requiring the state to commit greater resources to prevent the full brunt of international price hikes from reaching the Dominican market. The dependence on imported oil makes the country particularly vulnerable to these global price fluctuations.

“

The federal government stands ready to help and support the government of British Columbia in these efforts.