Rising international oil prices could lead to FSM fuel price increases
- Category: News
- Published: Monday, 30 November -0001 00:00
- Written by Bill Jaynes
- Hits: 635
Vital FSM Petroleum Corporation
Pohnpei, Federated States of Micronesia – On behalf of Vital FSM Petroleum Corporation (FSMPC), Chairman of the Board of Directors Mr. Faustino Yangmog extends warm greetings to our valued customers as the nation welcomes in the New Year, and is pleased to confirm that, while regional and international market prices have steadily risen in the past six months, prices throughout the Federated States of Micronesia have remained stable since May 2020.
“In April 2020, international oil prices fell significantly due to demand destruction caused by the controls introduced by governments in response to the global COVID-19 pandemic. But since May 2020, domestic oil prices in the FSM have remained steady, with gas prices as low as $3.75 per gallon in some FSM states. We are very grateful to our customers in all four states for passing along up to 100% of the savings they’ve received from their wholesale purchases with us,” Chairman Yangmog explained.
“However,” he continued, “international oil prices have seen a gradual recovery impacted by a weakening US dollar and market demand, and neighboring islands like Guam, Palau and Majuro have seen the cost of gasoline and diesel follow the same upward trend. Guam motorists first saw pump prices jump $0.10 per gallon of gasoline mid-December, and another $0.10 this past week, to $3.88 per gallon of gasoline. We have held out price increases over the festive season and will continue to do so as long as we can.”
FSMPC Communications Officer Ms. Hannah-Marie Isaac reported that a market survey revealed, as of January 11, 2021, that Kosrae had the lowest pump price in the greater Micronesian region at $3.75 per gallon of unleaded gasoline, which was followed by Pohnpei at $3.85 per gallon. Gas prices in the FSMPC Chief Financial Officer Mr. Johnny Adolph advised that should prices remain at these elevated levels, consumers should eventually expect a gradual increase. “In 2020, as a result of lower international air travel and reduced maritime activities, we experienced a significant reduction in domestic sales by approximately 20%. We will continue to do our best to keep prices in the FSM stable, as low as reasonably practical and within $0.35 of Guam’s pump price throughout 2021.”