Rising Fuel Prices - The Real Picture
As fuel prices continue to rise, the Adscene thought it would be interesting to compare the prices here in the Dominican Republic with the US, Canada, the UK, Germany and Italy. In each of the aforementioned countries, prices at the pump are rising steadily, and have increased more than 30% over the last year.
The US remains one of the cheapest countries to fill up your car, but surprisingly, the Dominican Republic is only around 25% more expensive.
If you think the DR is expensive, look down the list at the European countries. High governmental taxes in the UK and other European countries mean a tank full of full will cost more than double that in the US.
Options?
Coversion. Many residents in the DR have converted their vehicles to run on propane, which at RD$83 pesos per gallon is less than half the price of regular fuel. Most taxis and commercial transport opt for this option unless they have more expensive diesel vehicles.
Propane is cheaper because the Government subsidizes the price you pay. The fly in the ointment is that it’s rumoured that the Government will be cutting back on the propane subsidies, so factor in this if you are considering a conversion.
Get a smaller car. Coming from a country where fuel has historically been cheap, Americans and Canadians are used to driving large engine trucks and SUV’s. Europe, particularly the UK, has had higher prices for many years, and that fact has conditioned many Brits and Europeans into purchasing more fuel efficient vehicles with smaller engines.
Biofuel - Not yet readily available here. Brazil is currently the world leader in producing Biofuel, or fuel made from sugar cane, making about 16 billion litres per year of ethanol from its sugarcane industry.
In 2004, the first full year that "flex-fuel" cars were on sale, they accounted for more than 17% of the Brazilian market. Flex-fuel cars run on alcohol, normal gas (petrol) or a mixture of the two. The US is also making large steps in this direction.
Production of ethanol doubled globally between 2000 and 2005, with biodiesel output quadrupling.
Sixty percent of new cars can run on a fuel mix which includes 85% ethanol.
BioFuel can be made from other sustainable crops besides sugar cane. Some critics argue that the there are equal downsides in pollution and cost of production in producing biofuel as there is to petroleum.
Overall opinion?
Ideally make sure your next vehicle is "flex-fuel" compatible and can accept E-85 fuel, meaning it will run on a mixture of 85% ethanol and gasoline. This way you can use either regular gasoline or the possible new biofuels. Many new vehicles from most manufacturers will accept E-85 without modification.
Price per gallon (pesos) - Price per gallon (US$)
US - RS$139.33 - US$4.08
Canada - RS$176.90 - US$5.18
Dominican Republic - RS$194.30 - US$5.68
Germany - RS$284.52 - US$8.33
Italy - RS$296.44 - US$8.68
UK - RS$299.38 - US$8.77
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