[DR1] State loses RD$2.0 billion on LPG

[NewsWhore]

Consumption patterns in the purchase of gasoline, caused by the large increases in the price of a gallon of fuel, have been reflected in the corresponding increase in the purchase of propane gas (LPG). However, this 24% increase in LPG consumption has cost the government a hefty RD$2.0 billion pesos in lost tax income, because of the corresponding loss of gasoline sales whose high prices contain a sizeable contribution to the tax office. According to Listin Diario, government sources revealed this data, at the same time pointing out that petroleum bill may well reach US$4.1 billion in 2006. Propane for domestic use (household cooking and vehicular) receives a government subsidy of RD$17.35 per gallon. This means that the government spent RD$4.931 billion in 2005, and RD$6/946 billion in 2004 when the government kept propane at RD$25 per gallon through subsidies. The IMF agreement will force the government to focus the subsidies on the poorest sectors, especially when it comes to propane.

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