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View Full Version : Government to subsidize fuel



NewsWhore
11-30-2007, 03:50 PM
Last night President Leonel Fernandez announced a temporary subsidy of RD$31.79 per gallon of diesel fuel for unionized public transport and cargo vehicles. The subsidy is part of decree 677-07 and grants the subsidies to transport and cargo unions. The subsidy will last for three months.
Industry and Commerce Minister Melanio Paredes explained that once the three months are over, new and permanent measures would be established.
Hoy writes that each month the gas stations that serve the transport and cargo vehicles will submit receipts for each individual transport union and the government will refund each driver's taxes. Article one of the decree establishes a refund of RD$17.55 as part of Law 112-00 and corresponding to Tax Rectification Law 557-05 for urban and inter-urban transport union affiliates who use diesel fuel and transport food or construction materials. Article twos establishes that the refunds will only be made to affiliated union transporters that are legally registered, and through the fuel distributors.
This move will maintain the gallon of fuel at RD$104 and RD$105 and will prevent passenger fares from going up.
Article three indicates that representatives from the Industry and Commerce and Hacienda ministries and the transport unions must meet to decide how the decree will be implemented. A deadline of seven working days was given for the implementation to come into effect. Paredes said that gas stations serving the transporters must be registered with the government and must have paid all their taxes so that the information provided is accurate and trustworthy. Paredes added that the consumption limit of one million gallons a month. An estimated 32,000 public transport union vehicles and 3,000 cargo vehicles would benefit. Currently, the country's daily consumption is 24 million gallons daily, which includes the energy companies, industries and the private sector.

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