In 2005, Venezuelan president Hugo Chavez initiated the Petrocaribe Energy Cooperation Agreement, an arrangement that allowed 12 Caribbean nations, including the Dominican Republic, to purchase oil at a subsidized cost. Nevertheless fuel prices in the D.R. have jumped 50 percent in the last two years. Gasoline and diesel currently cost around $4.60 and $4.16 per gallon, respectively. Dominican taxi and bus drivers have recently begun taking out their frustration over higher fuel costs on Venezuela, protesting outside the Venezuelan Embassy and demanding more information on the details of the Petrocaribe program. In response, Alfredo Murga, Venezuela’s ambassador to the D.R., pointed out that Dominican authorities set their own fuel prices based on international crude oil markets. In other words, even Petrocaribe does not protect Dominicans from the vagaries of oil prices. These developments only reinforce Worldwatch’s position: such complete dependence on oil for electricity in addition to vehicle fuel is untenable for the Dominican Republic.
[Read the full Re|Volt blog here]