Fuel prices affected by major oil companies' war

The Dominican Republic faces escalating fuel costs, with imports of petroleum derivatives surging by nearly 30% in the first half of 2026. This increase translates to an additional $414.55 million spent, bringing the total import expenditure for these products to $1.8 billion, according to foreign trade statistics.

This rise in import costs directly impacts consumers, as gasoline prices have climbed substantially. In six months, the price per gallon of premium gasoline increased by 51 pesos to 341.10, and regular gasoline rose by 38 pesos to 310.50. These hikes represent percentage increases of 17.6% for premium and 13.9% for regular.

To cushion the blow of international price increases, the Dominican government has implemented significant subsidies. For the current week alone, subsidies amounted to 1.31 billion pesos. Year-to-date, these fuel subsidies have surpassed 27 billion pesos, reflecting the government's effort to stabilize domestic energy prices.

The upward pressure on prices is attributed not only to crude oil costs but also to a sharp increase in the international refining margin. The margin for gasoline rose from $24.67 per barrel in late February to $52.19 by late June, while the margin for gasoil increased from $37.29 to $62.64. The Dominican Republic is particularly vulnerable as it refines only about 20% of its consumption, relying heavily on imported refined fuels.

Meanwhile, major U.S. oil companies have reported extraordinary profits during this period. ExxonMobil posted profits of approximately $18.7 billion for the first six months of 2026, while Chevron reported around $14.3 billion in the same period. ConocoPhillips and other major producers have also seen substantial gains, benefiting from the global energy market dynamics.