Fuel drops, prices don't

[NewsWhore]

International fuel prices have dropped 50% since June, when they were at a record US$145 per barrel. The high price of oil caused a trickle-down effect, increasing transport and production costs, which in turn increased food prices. But while fuel prices have since slowly dropped, food prices have stayed the same. According to Hoy, only two products from the family food basket, oil and pasta, have seen a slight decrease in price. Listin Diario reports that basic foodstuffs have also experienced sharp decreases, though it hasn't reflected in other food price decreases. Listin reports that the price of a metric ton of corn has decreased by 18.5% since June, while the metric ton of rice has decreased by 28.9%, soy has decreased by 70.38% and wheat has decreased by 30.4%. Although these prices have decreased, bakeries have refused to drop prices. Chicken farmers, who during the summer argued that the production costs forced them to up prices, have also refused to lower them. Public transport passengers are also asking why prices are still high. Drivers' leaders say that although fuel prices have dropped, it has yet to translate to cheaper fuel derivatives and spare parts for vehicles. Inter-urban bus fares have shown slight decreases of up to RD$10, and freight prices might be reduced as early as today, but these changes are arbitrary and not part of policy. Union leaders will meet today to discuss whether to keep prices at current rates. Union leaders say that although fuel prices are down this doesn't specifically translate into decreased operational costs for the unions, forcing them to maintain prices.

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