FSMPC announces price increase
- Category: News
- Published: Thursday, 12 April 2018 00:08
- Written by Bill Jaynes
- Hits: 88
Pohnpei, Federated States of Micronesia, April 4, 2018 – Vital FSM Petroleum Corporation (FSMPC) has implemented the second of three scheduled price increases for gasoline that became effective Tuesday, March 20, 2018. Pump prices in the FSM now parallel Guam and remain below the maximum benchmark.
Proposed legislation changes in Guam may place an upwards pressure on FSM fuel prices in the future. Bill No. 257-34 (LS) was introduced on March 13, 2018 to the 34th Guam Legislature by Senator Telena Cruz Nelson, Senator Thomas C. Ada, and Senator Dennis G. Rodriguez, Jr., and goes into effect sixty (60) days after enactment. The Bill seeks to eliminate a three-decade long tax exemption on liquid fuel transshipped through the Port of Guam. The bill approximates thirty million (30M) gallons of liquid fuel are distributed from Guam throughout the Micronesian region on an annual basis, and proposes that elimination of this tax exemption will generate up to $4.5M in revenue for Guam.
The FSMPC has had a fuel supply agreement with Mobil Oil Guam Incorporated (MOGI) since September 2013, which was awarded following an international bid and tender process. The MOGI proposal provided the best value-for-money at that time, and used a supply model that transshipped fuel products through Guam.
“The proposed increases in taxes will be passed within the fuel supply agreement, and ultimately to consumers in the FSM,” said FSMPC CEO, Mr. Jared Morris. “We will continue to watch the trend in international oil markets, as well as legislative changes as they develop and assess how they may impact our supply chain costs. Where possible, we will take necessary actions to ensure the viability of our fuel supply model and continue to investigate viable renewable alternatives.”
Vital FSM Petroleum Corporation’s Board and Management express thanks to policy makers, customers and the people of the FSM for their continued support of the company.