Dominican Republic Agrees to Fuel Talks

Gas stations ran low on fuel in the Dominican Republic on Saturday after the country's largest fuel company refused to replenish supplies in a bid to pressure the government to increase profit margins.

The National Association of Gasoline Retailers (Anadegas) resumed fuel purchases later Saturday after the government agreed to hold talks on Tuesday, said Juan Ignacio Espaillat, the company's president.

Anadegas, which runs 80 percent of Dominican gas stations, also wants the government to grant it licenses to sell propane and to correct alleged distribution violations, Espaillat said.

Fearing shortages, the government raised the price of a gallon (3.78 liters) of gas on Saturday from US$3.42 (euro2.87) to US$3.51 (euro2.95). Oil prices increased 1 percent to US$2.80 (euro2.35) a gallon.

The Caribbean nation of 8.8 million has faced chronic gas shortages in recent years.

Gasoline prices rose by more than 25 percent last year in the Dominican Republic and are among the highest in Latin America. Officials are trying to bring the country's consumption down from an estimated 165,000 barrels of oil a day in 2005, while negotiating to increase fuel purchases from countries including Russia, Venezuela and the Middle East.