Melanio Paredes in the National Palace.
SANTO DOMINGO.- The Government, bus owners and truckers since Monday measure their strength on the topic of higher fares and freight charges, with the authorities warning against unauthorized hikes and the unions say they have no other option.
Under mutual threats Industry and Commerce minister Melanio Paredes said if an unauthorized increase takes place on freight as well as on commuters, it’ll halt the subsidy given several months to the unions.
But National Transport Union (CNTU) president Ramon Perez Figuereo said they’ve no problem with the Government removing that facility, and instead challenged it to “seek the solution for compensating (the drivers) for the increase undergone by fuels” before Wednesday, or the population will pay higher fares.
The announced increases arose after Industry and Commerce on Friday posted increases in gasoline and diesel of as high as $8.80 per gallon, prices which were frozen before the elections, even as oil skyrocketed past US$125 the barrel.
The official said if the subsidy for passenger and freight is discontinued, the Government would pass it directly to commuters so they can bear the increases, though the way to do so has yet to be specified.
Perez met yesterday with truck drivers from the central cities Jarabacoa and Constanza, which supply the vegetables and other farm products, to analyze the measures planned.
From: United States, Killeen, TX - Home of the 1st Cavalry
In today's periodical, the initial cost of gasolene, the aded cost for "management andthetaxes imposed by the government on top of those figures were as follows:
--- Initial cost --- Mgt fees Taxes Total to consumer
Prem. Gasolene --- 110.76 --- 20.51 --- 64.95 --- 196.22
Reg. Gasolene --- 106.88 --- 18.45 --- 58.81 --- 184.14
Gasoil (Reg.) --- 113.66 --- 15.40 --- 35.74 --- 164.80
Simple math shows that theTAXES on the combination ofinitial cost + mgt fees for Prem. Gasolene amount to 49.5 % going to the government.
The percentage of taxation on the other two fuels are 46.9% and 27.7% respectively.
I just wonder why the gov't can't reduce thair taxes on fuel
From: United States, Killeen, TX - Home of the 1st Cavalry
This business of thegovernment charging so much in taxes is ludicrous in light of thealready high price of fuel.
On top of that, they are subsidising the fuel to the transport unions while making up the difference with exhorbitant taxation on gasolene.
In a country which already has the highest tax rate in LA coupled with the escalating price of a barrel of oil the gov't would take a more benevolent stance on taxes.
Then there is the taxes on basic foodstuffs that has been rammed down the throats of the poor and rich alike.
The gov't no longer needs the extra money derived from the taxes imposed to recover from the Hipolito debacle, so why don't they revert to the tax levels of 2004 before Leonel raised taxes to such high levels?
They also could cut an enormous amount off the budget by reducing the size of government and eliminate some of the Ministeries. That would save a few Billion pesos annually.
TB
From: Cuba, it is a secret the censors are looking for me
That all well and good ..they are betting on the crash of oil prices...and they will crash and soon....you can bet on it .......just remember I told you so .....and I will remind you
From: United States, Killeen, TX - Home of the 1st Cavalry
GC;
I really hate to disallusion you, but oil prices will continue to rise for a considerable time yet, then will stabilize. At what figure, I don't know, but "UP, UP and Away" is the direction it will go.
As more andmore countries increase their demands on the oil production available, the price can go only ONE WAY, sadly to say.
The Dominican Gov't is not betting on a "crash in oil prices", you can bet your bottom dollar. What they are doing is getting as much through taxes as they can while people aren't looking.
It won't matter one iota if the gov't buys out Shell or not, the ones making the money are thegov't and their hangers-on.
TB
Written by: juanb, 26 May 2008 6:09 PM
From: Dominican Republic
The very simple solution is for the government to finally take a realistic look at the huge waste of tax monies, such as in the electric governance. Cut the fat out and there is plenty of money to go around for the things that we really need (better education system, better roads, etc.).
I don't disagree with you that often GC, but I believe with the increasing world wide demand for oil, that the price will not go down for a long time.
From: Cuba, it is a secret the censors are looking for me
the demand is going to come to a screeching halt......I will be here to tell you I told you so.....the bubble is about to pop
From: Cuba, it is a secret the censors are looking for me
the Saudis are not kidding this is speculative like every other time oil jumped...this is not current demand this is hedge funds awash in pension fund money and the end is near
From: Cuba, it is a secret the censors are looking for me
Written by: Pedro, 27 May 2008 10:50 AM
From: Dominican Republic
You are both right, TB and gouetcolonial, price will come down. Eventually. But not to levels we once were used to. It will like stabilize at a level above 100/barrel. But how much higher will only be speculation - and there is enough of that already now....
From: Cuba, it is a secret the censors are looking for me
the higher it goes the further it falls ...India just did away with fuel subsidy and China will after the olympics.....hedge funds and commodity speculators will get thumped ,as world economy slows and dollar rises..it will be lower than 100....the magic word is Parabolic you will hear a lot about it soon..
Written by: BLANCO, 27 May 2008 4:27 PM
From: Dominican Republic
tb your figures need correcting premiumgas gov't taxes amount to 64.93,
distributot 4.25, the guy who pumps it 13.26, transport3.00. base price 110.76
taxes on premium 33% retail 196.20
taxes on regular 31% retail 184.10
diesel 21% retail 164.80
this not to justify these incredeble prices but correct is correct
From: United States, Killeen, TX - Home of the 1st Cavalry
Blanco:
The figures I published were taken from yesterday's "LISTIN DIARIO" periodical which I supposed to be correct.
The amounts you quote need to be added up for the total of 20.51 for the transporter, distributor and station selling.
The only difference is that I posted 64.95 in taxes whereas you posted 64.93.
the only difference between your figures and mine is the .02 pesos in taxes.
Check your math against mine.
TB
From: Cuba, it is a secret the censors are looking for me
get rid of the subsidies everybody else is.....they no longer make sense....they are just collecting the tax and then giving it back ....one or the other...if world economy continues slowing it will below 100 by august 1 and if dollar starts to rise below 90 or even less
From: United States, Killeen, TX - Home of the 1st Cavalry
i posted an article, but it was too long andi don't have thelink to it since it was sent to me by a friend in the States.
It has to do with the "Hedge Fund" managers and their manipulation of the "Futures Market" on oil and natural gas.
I'll try to trace the article and see if I can get a link to it.
Very interesting.
TB
From: Cuba, it is a secret the censors are looking for me
the amount of pension fund money that has moved into hedge funds and commodities in the last 5 years is startling and is having its own effect ....... many say the bubble is ready to pop
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--- Initial cost --- Mgt fees Taxes Total to consumer
Prem. Gasolene --- 110.76 --- 20.51 --- 64.95 --- 196.22
Reg. Gasolene --- 106.88 --- 18.45 --- 58.81 --- 184.14
Gasoil (Reg.) --- 113.66 --- 15.40 --- 35.74 --- 164.80
Simple math shows that theTAXES on the combination ofinitial cost + mgt fees for Prem. Gasolene amount to 49.5 % going to the government.
The percentage of taxation on the other two fuels are 46.9% and 27.7% respectively.
I just wonder why the gov't can't reduce thair taxes on fuel
On top of that, they are subsidising the fuel to the transport unions while making up the difference with exhorbitant taxation on gasolene.
In a country which already has the highest tax rate in LA coupled with the escalating price of a barrel of oil the gov't would take a more benevolent stance on taxes.
Then there is the taxes on basic foodstuffs that has been rammed down the throats of the poor and rich alike.
The gov't no longer needs the extra money derived from the taxes imposed to recover from the Hipolito debacle, so why don't they revert to the tax levels of 2004 before Leonel raised taxes to such high levels?
They also could cut an enormous amount off the budget by reducing the size of government and eliminate some of the Ministeries. That would save a few Billion pesos annually.
TB
I really hate to disallusion you, but oil prices will continue to rise for a considerable time yet, then will stabilize. At what figure, I don't know, but "UP, UP and Away" is the direction it will go.
As more andmore countries increase their demands on the oil production available, the price can go only ONE WAY, sadly to say.
The Dominican Gov't is not betting on a "crash in oil prices", you can bet your bottom dollar. What they are doing is getting as much through taxes as they can while people aren't looking.
It won't matter one iota if the gov't buys out Shell or not, the ones making the money are thegov't and their hangers-on.
TB
I don't disagree with you that often GC, but I believe with the increasing world wide demand for oil, that the price will not go down for a long time.
George Soros:" rocketing oil price is a bubble."........the magic word is PARABOLIC
distributot 4.25, the guy who pumps it 13.26, transport3.00. base price 110.76
taxes on premium 33% retail 196.20
taxes on regular 31% retail 184.10
diesel 21% retail 164.80
this not to justify these incredeble prices but correct is correct
The figures I published were taken from yesterday's "LISTIN DIARIO" periodical which I supposed to be correct.
The amounts you quote need to be added up for the total of 20.51 for the transporter, distributor and station selling.
The only difference is that I posted 64.95 in taxes whereas you posted 64.93.
the only difference between your figures and mine is the .02 pesos in taxes.
Check your math against mine.
TB
It has to do with the "Hedge Fund" managers and their manipulation of the "Futures Market" on oil and natural gas.
I'll try to trace the article and see if I can get a link to it.
Very interesting.
TB