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Global fuel prices continue to rise — affecting local residents

fuel price graphic showing the many factors that affect prices
reporters@samoanews.com

Pago Pago, AMERICAN SAMOA — Average price at local gas stations is $3.60 per gallon for gasoline and $3.75 per gallon for diesel, according to the Sept. 15-Oct. 14, 2018 fuel price glance for American Samoa report, released Tuesday by the Office of Petroleum Management (OPM).

The report shows that within the aforementioned time period, the maximum allowable price (MAP) or wholesale price for all petroleum products hiked from the previous period, which was Aug. 15-Sept. 14.

For the current MAP, it’s $3.0729 — an increase of 2 cents per gallon — for gasoline. It’s also a 2-cent per gallon hike in diesel fuel products such as road, boilers/generators, commercial fishing vessels and other marine diesel.

Additionally, the MAP increased by 3 cents per gallon to $2.9589 per gallon for the ultra-low sulfur for road diesel and ultra-low sulfur diesel for boilers/generators. And the MAP for kerosene and jet fuel hiked by one-cent per gallon.

The fuel price report points out that based on global industry reports a three-month high in prices out of Singapore, as well as an increase in the cost of transporting fuel to the Pacific islands — which gets its fuel supply from Singapore refinery — are among the contributing factors in the MAP hike.

“Wholesale price or MAP increased and the upward cost movement is expected to continue,” said OPM petroleum officer, Sione Kava, who noted that the Base and the Transportation cost make for over 63% of the MAP on diesel, and 61% of the MAP for gasoline and jet fuel sold on island. 

“These costs are determined by the global market, and American Samoa and the rest of the region for that matter have very little to do with it,” the report reminds local consumers, and points out again that while ASG/ OPM has control over the MAP, it has no control over the retail price at the gas stations, which is “determined by the owners”.

Meanwhile, the Consumer Price Index report shows that “high cost” of unleaded gasoline and diesel fuel, along with the airfares contributed to a 0.3% increase in the Transportation Group for the third quarter (July to September) of 2018.

The Housing Group registered a 0.9% quarterly increase because of higher costs of electricity and water, as well as household appliances and construction materials.

The biggest increase for the third quarter is 3% in the Alcoholic Beverage Group, according to the CPI, released this week by the Commerce Department. “Coors light and Vailima beer are no longer on promotional sale and is back up to regular prices,” said the report, as reason for the hike.