Full speech by President Luis Abinader on the war in Iran and the impact of fuels

Santo Domingo.- President Luis Abinader addressed the country to address the international crisis generated by the war in Iran, in a message in which he explained the measures that the Government will implement to mitigate its effects on the national economy. Here's the full message: Dominican people, I am addressing you today to speak clearly and responsibly about a topic that currently concerns the entire world; the war that is taking place in Iran and its repercussions on international prices, especially for oil, fuels, and some foods. Let me speak frankly, but also serenely. Without dramatics, but without evasions. As one speaks when a country needs to clearly understand the moment it is living. The Dominican Republic has a very open economy that is integrated into the world. When international conflicts of this magnitude occur, tensions arise in global markets that can translate into increased costs in transportation, energy, and raw materials. And this is a reality that no country, and especially one like ours, can ignore. If we want to understand the magnitude of what is happening, we must look at a key point on the map: the Strait of Hormuz, in the Persian Gulf. About 20% of the oil and natural gas consumed by the world passes through that route. Today, that flow has been severely affected, causing one of the largest supply disruptions in the recent history of the global market oil market. The result is a market under strain, with significant increases in the price of crude oil and, above all, in products that directly impact daily life: the diesel that moves transportation, aviation fuel that sustains tourism, or liquefied gas used by thousands of homes.

It is important to understand this clearly: the Dominican Republic imports all the fuels it consumes. We do not set those prices, we receive them. And when those prices go up, their impact inevitably affects our economy.

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But I also want to tell you something with certainty and firmness: "Our country is prepared to face these types of situations." It wouldn't be the first time that Dominicans have gone through a complex international scenario. We have faced global inflationary shocks caused by the pandemic, by the global logistics crisis, and by the war in Europe. And in each of those difficult moments, the Dominican Republic resisted, protected its people, and maintained economic stability. Today we have a stronger economy, with more prepared institutions and with tools that allow us to act quickly to cushion any impact that may arise. I want to announce that the Government has already activated all the mechanisms to monitor the evolution of international prices daily and anticipate any impact on our economy. And given this situation, we have set three fundamental objectives that I want to share with you:

First of all; maintain macroeconomic, fiscal, and social stability at all costs. To this end, we will continue to protect the most vulnerable households, strengthen social programs, and reallocate resources from less-priority items. We have already identified nearly 10,000 million pesos that can be allocated for these purposes without increasing total spending.

Secondly; we are monitoring the prices of food and agricultural inputs and will re-implement a subsidy on fertilizers, for an initial amount of 1,000 million pesos to keep their prices at what they were before the crisis. In this way, we will prevent the international increase in fertilizers from translating into higher food prices for Dominican families.

And thirdly; we will seek to sustain public investment as a driver of economic growth, even in this complex international context. We know that the situation cannot determine or deteriorate our future. Now, there is something important that we must understand as a country. The State has been cushioning the impact of these increases through subsidies for fuels and electricity. That effort has been significant and necessary.

In 2025, we subsidized fuel and electricity for an amount of 11.5 billion pesos, with another 105 billion. And so far in 2026, the fuel subsidy already amounts to about 4 billion pesos.

The budget for the year 2026 was made with oil at 65 dollars per barrel, the increase to almost 100 dollars has a growing fiscal cost that, if maintained without adjustments, would compromise the sustainability of public finances.

That's why the gradual adjustments we've implemented in fuel prices are a responsible response to a demanding external reality. The partial correction in gasoline and diesel —between 5.2% and 6.7%— will allow reducing the subsidy by at least 12,000 million pesos in the remainder of the year.

Even so, fuels will continue to be subsidized by amounts that in some cases exceed 100 pesos per gallon, and we have decided to keep the price of LPG unchanged, due to its direct impact on the most vulnerable households.

But we must be clear and I want to be honest with you: in the face of this situation, it will be necessary to make certain sacrifices. Not disproportionate, not indiscriminate, but inevitable. There will be pressure on electricity tariffs, on transportation costs and, to some extent, on food prices. "No because our economy has weaknesses, but because we are facing a major external shock." The Government will assume most of the effort, but shared responsibility is also required. Companies can adopt remote work schemes, citizens can optimize fuel usage, and as a society we must act with awareness and efficiency. Now, it is also important to put this situation in perspective. The Dominican Republic continues to be one of the most dynamic economies in the region. It maintains growth, stability, and confidence. We are not facing a crisis generated from within, but rather an external shock. And that difference is fundamental.

From a fiscal and financial standpoint, the country arrives at this moment with a solid position. We have robust liquidity, access to international financing, and reserves exceeding 16,000 million dollars.

In addition to this, there are forward-looking decisions that strengthen our response capacity, as well as additional income derived from mining and from better tax collection resulting from our growth and our tax efficiency. In the electrical sector, historically vulnerable to these shocks, we have better conditions today. The diversification of the energy matrix, the greater weight of renewables and strategic decisions such as the fixing of the price of coal at Punta Catalina and natural gas contracts already secured for a year, will significantly cushion the impact.

Our goal with all of this is clear: that any international turbulence has the least possible impact on the daily lives of Dominicans.

But this moment also leaves us a lesson for the future. It reminds us of the need to reduce our dependence on fossil fuels, to accelerate the transition to renewable energies and to continue building a more resilient, diversified and strong economy. Dominicans and Dominicans, In times of global uncertainty, the most important thing is to act with serenity, responsibility and vision for the country. This government will continue to make all necessary decisions to defend economic stability, protect the purchasing power of our families, and ensure that the Dominican Republic continues to move forward steadily. We have shown that we know how to face crises without losing our way. We did it in the recent past and we will do it again now, with planning, with firmness and always putting our people at the center. I want every Dominican man and woman to be certain that this government will be vigilant, acting when necessary and using all the tools of the State to protect families and maintain our course as a country. Because the biggest risk is not making responsible adjustments in the present, but postponing decisions and facing much higher costs in the future. We Dominicans have demonstrated, on multiple occasions, our ability to adapt and overcome. This will not be the exception. Yes, the moment demands awareness. It demands responsibility. And it demands a share of shared sacrifice. But it also demands trust. Confidence that decisions are being made to protect the stability of the country. Confidence that this is a transitional period. And confidence that, if we act correctly, we will emerge strengthened and with the minimum possible consequences. The economic history of the Dominican Republic is, to a large extent, the story of its ability to overcome challenges. And this is precisely one of those moments.

Let's move forward, with clarity, with balance and with determination. Because this country does not stop. This country adjusts, adapts and continues to move forward.

On that, have no doubt, your government and your president will work 24 hours a day.

Thank you very much and may God always bless you.