The government of the Dominican Republic has confirmed that it has acquired Royal Dutch Shell's share in the country's Refidomsa oil refinery as it moves to stabilise rising fuel prices.

Over recent months, residents of the Caribbean nation have launched a series of demonstrations against soaring energy prices, with gas prices currently standing in excess of $5 a barrel.

According to treasury minister Vincente Begona, the rising prices have been exacerbated by the partnership with Shell, which effectively meant that the country was unable to take full advantage of the Petrocaribe programme, whereby poor nations benefit from affordable Venezuelan oil.

As such, the government has moved to take full control of the Refidomsa refinery, which is situated just outside the national capital, in a deal worth around $110 million, though the source of the financing has yet to be confirmed.

The news comes just weeks after the Dominican Republic's newly-elected president Leonel Fernandez outlined his plans to increase investment in domestic ethanol production in an effort to cut back the country's dependence on oil imports.