BCRD Projects US$900.0Mn Increase in Dominican Energy Bill

• The Dominican Republic’s energy bill is expected to climb to approximately US$5.4Bn this year, nearly US$900Mn above initial projections, as rising global oil prices driven by the conflict involving Iran continue to impact fuel costs and inflation, according to the Central Bank of the Dominican Republic (BCRD).
• In a recent analysis, the Central Bank warned that disruptions to global oil supplies caused by the war have increased economic pressure worldwide, particularly through higher fuel and energy prices. The institution noted that the closure of key shipping routes through the Strait of Hormuz has resulted in annual inflation in the Dominican Republic reaching 5.11% in April, surpassing the official target range of 4% ±1%.
• Despite the increase in inflation and energy costs, the BCRD emphasised that the local economy continues to show resilience, supported by 4.1% economic growth during the first quarter of the year and international reserves exceeding US$15.8Bn.
• The bank expects inflationary pressures to ease in the coming months if international supply conditions stabilise, projecting inflation could close the year near 4.5%, while core inflation has remained within the target range for nearly three years.

(Source: Dominican Today)