Letter to the Editor - Cruide Oil Prices
- Category: Opinion
- Published: Wednesday, 16 March 2016 08:46
- Written by Ni Wahu, Ausen T. Lambert
- Hits: 2025
In the month of September, 2015, I wrote a letter to you regarding the prices of a barrel of crude oil worldwide for the past four months beginning in June until September, 2015. The average decline was three times lower at fifty dollars ($50.00) compared to the peak price worldwide. The peak price for a barrel of crude oil was one hundred and fifty dollars ($150.00). The peak price at our pump stations per gallon was six dollars and twenty cents ($6.20).
I assumingly pointed out that the price of a gallon of gasoline here in pohnpei should be somewhere above two dollars ($2.00 plus) taking into accounts the increases as well the decreases that we have experienced relating to the world market prices and the price of a gallon that we have ever witnessed here in pohnpei at its highest. At that time in September, the price per gallon was four dollars and sixty-five cents ($4.65). Thankfully though, there were two slide drops that took place at the pump stations. The prices went down from $4.65 to $4.40 and to $4.20 at some stations and $4.15 at other places.
The prices per a barrel of crude oil since September at $50.00 continued to sharply fall to $40.00 down to $30.00. As of yesterday, January 14, 2016, the price of barrel of a crude oil worldwide was significantly reduced to $20.00. The price now per a crude oil worldwide is over seven times lower.
What will be the price of a gallon of gasoline at the pump stations when the crude oil price on the world market is over seven times lower? What will be the charge per kilowatt hour for cash power at PUC considering the significant reduction?
The FSM Petro Corp is by law responsible to bring in petroleum products into the FSM replacing MOBIL. The purpose and goal for replacing MOBIL with the FSM Petroleum Corporation is to make sure we are able to control and maintain the costs of petroleum products imported as well as the operational cost of the Offices are controlled and maintained at their minimal as this is an agency of our five Government run and operated by our own people as the governing Board of Directors. The offices in each of the state are required by law to establish their own separate accounts so that the operation in a state does not subsidize the operation of the other states.
Is Petro Corp still in the line with this mandate? What keeps the price of a gallon of gasoline stagnant for so long? Considering the expansion made by Petro Corp in the name of Vital which is a plus for the FSM as far as I am concerned, is this not a compelling factor why we could not realize the price we deserve to pay at the pump stations and PUC as well.
Ausen T. Lambert