Oil bill is en route to the US$ 4,797.5 MM

The amount of the oil bill will this year reach $4,797.5 million if the country maintains a daily average consumption of 130,000 barrels of oil, taking into account that the price of a barrel of crude and an exchange rate of RD was estimated at US$ 101 in the budget for 2012 $40.3 by dollar.

The President of the Dominican petroleum refinery (Refidomsa), Francisco Méndez, is optimistic about the behavior of the economy this year. Hopes that the estimated growth of 5% of the economy for 2012 reflects equivalently in the invoice

Of the total amount of the oil bill for this year Refidomsa will handle about 70 per cent, equivalent to $3,358.3 million, which is why, according to Méndez, the responsibility of the joint company, (Venezuela - Dominican Republic) is essential for the market of fuels in the local market.

Explained that the tanker Caribbean agreement (PetroCaribe) Refidomsa u000anominate a certain amount of products and crude oil going to funding from the State Treasury, resources that are used for budgetary affairs.

The Government for this year's budget was calculated based on a rate of 40.3 dollar by one, while the deficit amount RD$ 78,000 million, lower than the 2011 was in around RD$ 110,000 million.

The Economist Henry Hebrard has expressed concern the alleged use of funds from the PetroCaribe Pact in electricity subsidy. In its view, the oil agreement is the best blessing, but at the same time curse that has received Dominican Republic, because of this decision by the Venezuelan Government the largest beneficiary has been the country, but since it is close to $2,000 million debt accumulated.

Considers that, although this amount is not a problem provided that those resources going to development, it should be sown in the field, in education, health, and system of u000aenergy.

"Part of the problem of PetroCaribe is that we are using it to basically cover the subsidy on electricity and this is the worst use that can be given, and that worries me," he indicated Hebrard.

With regard to the diversification of energy sources and their impact on a decline in the oil, Bill Mendez explained that natural gas competes with LPG, which Refidomsa produces about 1,000 barrels per day over the matter.

In its view, the correlation is in vehicular transport, but by lack of infrastructure for the commercialization of fuel propane gas continues to be the greatest consumption.

"For domestic purposes understand that there will be no difference." However, there has been variation in consumption for industrial purposes, as a part of the industries have gone to natural gas, but because of the prices recorded is not anticipated that these investments have the same feasibility u000a"which had in principle," said Mendez, who pointed out that investments that are expected in the East on the part of private groups are for specific projects that are in folder and therefore will not affect the production of Refidomsa.

Méndez supports the use of natural gas within the State of diversification strategy and believes it is feasible to transport. However, in the industrial part, according to their reports, there has been an increase in prices, which significantly affected the profitability.

In folder:
fuel market has evolved into Dominican Republic and refinery looking for new alternatives continue to be the leading company in the supply of fuel in the country

Its President, Francisco Méndez, revealed that the company does not rule out making new investments.

"Now, as business are open to break into any energy alternative that may be favourable to" u000a"Dominican Republic, understood natural gas and electrical projects", explained the President of Refidomsa.

With respect to the expansion of Refidomsa, explained that many people think that this only refers to the ability of refinement, which would involve an investment of more than $2,000 million, but which in the part of logistics of supply is in analysis, since that would give a greater capacity to supply the market and ask for larger ships.

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