Dominican Republic fuel crisis: Abinader warns of oil shock as prices surge

Energy crisis: Abinader warns of global shock impacting Dominican economy

President Luis Abinader addressed the nation on March 22, 2026, outlining the economic consequences of the conflict in Iran and its direct impact on the Dominican Republic.

In his speech, the head of state stressed the country’s full dependence on imported fuel, noting that rising global oil and gas prices are already affecting transportation, electricity generation and food costs.

To respond to the crisis, the government has activated daily monitoring of international markets and announced three key measures: maintaining macroeconomic and social stability, protecting vulnerable households through social programs and reallocating 10 billion pesos in the national budget.

An additional 1 billion pesos will be allocated to fertilizer subsidies to curb food price increases, while public investment will be maintained as a driver of economic growth despite global uncertainty.

Abinader also confirmed that fuel and electricity subsidies will continue, though gradual adjustments may be required to preserve fiscal sustainability. He called for shared responsibility among the state, businesses and citizens, while reaffirming the resilience of the Dominican economy to external shocks.

Fuel prices rise: subsidies fail to fully contain inflationary pressure

At the same time, the government announced a fuel price increase of RD$15 between March 13 and 20, 2026, affecting gasoline and diesel.

According to the Ministry of Industry, Commerce and MSMEs, the increase reflects ongoing instability in global oil markets linked to geopolitical tensions in the Middle East.

To soften the impact, authorities introduced subsidies totaling RD$1.7 billion, covering more than RD$45 per gallon of premium gasoline and over RD$90 per gallon of optimal diesel. Despite these measures, the increase has triggered inflation across the supply chain, affecting transportation, goods and essential services.

Social tensions: protests loom as cost of living rises

The fuel hike has sparked backlash from several social organizations, including Codonbosco, Cepatode, Ircap and Acadisando.

These groups argue that the price increase places additional pressure on households, transport operators and producers, warning that nearly four million people could be affected by rising living costs.

Community leaders have also cautioned that continued price hikes could trigger protests in low-income neighborhoods of Santo Domingo and the National District.

They are calling on the president to urgently convene the Council of Government and adopt further measures to ease the economic burden on Dominican households.

Soraya Ades.