Dominican Government to Assess Rising Fuel Costs with Airlines

• The Dominican Republic government is set to sit down with national airlines in the coming days to evaluate how climbing oil prices are affecting air travel operations.
• Tourism Minister David Collado confirmed authorities are keeping a close eye on global energy markets. To cushion any potential impact, the government is doubling down on short-haul routes, particularly to Colombia and Puerto Rico, and pushing forward on agreements with Canada to keep tourism flows steady.
• On the bright side, tourism remains robust, with roughly 800,000 visitors recorded last month alone, surpassing pre-pandemic numbers. Top source markets include the U.S., Germany, Canada, Argentina, and Chile.
• The government says it will keep strengthening partnerships with airlines and tour operators, especially on regional routes, to protect the sector and maintain the DR's standing as a top Caribbean destination.
• The broader economic fallout could be significant, as oil prices have climbed from the US$65 per barrel projected in 2026, straining public finances, with recent fuel price hikes of between 5.2% and 6.7%. President Abinader has warned that the ripple effects could extend beyond the pump, potentially hitting electricity rates, transportation costs, and food prices, putting everyday Dominican households under growing pressure.

(Sources: Dominican Today & NCBCM Research)