Julio Brache, president of the Association of Industries of the Dominican Republic, warned in Santo Domingo that recent increases in domestic fuel prices could force manufacturing companies to adjust the prices of consumer goods.
Speaking on Tuesday, September 29, 2026, Brache stated that while many businesses have absorbed higher energy costs so far, several firms are now contemplating price adjustments as diesel and raw material costs continue to climb.
The business leader explained that rising global crude oil and diesel prices, combined with domestic hydrocarbon price hikes, are putting increasing pressure on commercial operations across the nation.
The warning follows a decision by the Dominican government to raise main fuel prices by between two and four pesos per gallon for the week running from September 25 to October 2, 2026.
Under the updated pricing schedule, premium gasoline rose to 353.10 pesos per gallon, regular gasoline to 317.50 pesos, regular gasoil to 270.80 pesos, and optimal gasoil to 306.10 pesos per gallon.
Industrial impact of fuel price increases
Brache addressed reporters during the "Free zones, zones of opportunity" event, an industry conference organized in the capital by the Ministry of Industry, Commerce and MSMEs.
He noted that there has not yet been a widespread impact on consumer product prices because many industrial enterprises have taken on the initial burden of rising costs themselves.
However, Brache pointed out that numerous companies are already evaluating price restructuring, particularly due to the steep cost increases associated with diesel fuel used in transport and machinery.
Brache acknowledged that business leaders cannot yet predict whether price hikes will occur across the market in the coming months. He added that each enterprise will make its own decision based on its operational needs and the specific cost pressures within its industry segment.
Rising costs of raw materials and agricultural inputs
Beyond direct energy expenditures, industrial leaders expressed strong concern over the secondary impact of fuel hikes on essential imported raw materials. Rising hydrocarbon prices increase shipping and production expenses for key manufacturing inputs.
Brache specifically highlighted plastic resins, which are essential for manufacturing bottles, containers, and packaging, alongside synthetic fertilizers required by the agricultural sector.
He observed that these two categories create significant concern across the business community because higher costs for packaging and fertilizers generate direct upward pressure on food prices.
The Association of Industries of the Dominican Republic, known as the AIRD, represents the country's primary manufacturing firms, agribusinesses, and industrial producers. In an import-dependent economy, energy cost fluctuations frequently ripple through local supply chains.
Government defense of national economic policy
Responding to questions at the same event, Minister of Industry, Commerce and MSMEs Eduardo Sanz Lovatón emphasized that the current price pressures do not originate from domestic policy choices.
Sanz Lovatón stressed that the crisis stems from a complex international situation. He reminded reporters that the Dominican Republic produces neither crude oil nor refined gasoline, leaving the domestic market exposed to global price fluctuations.
The minister explained that the government has maintained an ongoing anti-crisis plan to cushion the domestic economy, which has successfully kept national commercial activity robust up to this point.
Sanz Lovatón pointed to official estimates from the Central Bank of the Dominican Republic showing that the national economy achieved a year-on-year growth rate of 4.5 percent as of August 2026.
Despite global economic headwinds affecting local markets, government officials maintain that existing economic buffer measures will continue supporting stability while monitoring international energy prices.
