More bad
news as gasoline prices skyrocket
New
MAP sees prices at the pump at $4.05 per gallon
by Fili Sagapolutele
Samoa News Correspondent
Price of gasoline
is expected to reach over $4 per gallon following the release
today of the new maximum allowable price (MAP), or the wholesale
price, for petroleum products sold in American Samoa.
Sione Kava of
the Office of Petroleum Management said if retail prices reach
$4 per gallon, it will be the first time in local history.
It has only been
two weeks since gas prices dropped by about 4 cents per gallon
following the MAP released on April 16.
Under the new
MAP released today, gasoline is at $3.62 per gallon, an increase
of 12 cents.
Kava said that
in the past, gas stations usually add on to the MAP 40% to cover
overhead and other expenses before coming up with the retail
price.
With the new
MAP, Kava said he expects the new average price for gas to be
around $4.05 per gallon.
The average gasoline
price on Monday was at $3.94 per gallon.
"Gasoline
prices are going up not only here in American Samoa, but the
rest of the Pacific region, including Hawaii and some parts of
the United States where it's either $4 or more per gallon,"
said Kava. "We have no choice but to deal with it."
With the continued
hike, Kava said the latest statistics reviewed by OPM show a
decrease in gasoline consumption for the first three months of
2008. He said the final numbers are currently being put together.
"I think
people are taking notice of the high gas prices tapping into
their family budgets and have decided to keep driving down to
only when necessary," said Kava.
Other petroleum
products also increased according to the new MAP. For diesel
fuel the new MAP has an overall 12 cents per gallon increase:
road diesel is now at $4.25; boilers/generators is at $3.94;
commercial fishing vessels at $3.74; and other marine diesel
is at $3.85.
The biggest hike
this time around is in jet fuel/kerosene which increased by 16
cents to $3.92 per gallon.
Kava said the
increase will raise concerns for airlines serving American Samoa.
High fuel prices
is already hurting airlines around the world with many reporting
fuel as their major expenses.
Kava said the
hikes in local petroleum prices are due to the continued increase
in world crude oil prices which reached $122 a barrel yesterday.
One of the biggest contributing factor in the high oil prices
is due to the decrease in the value of the U.S. dollar giving
more purchasing power to other nations such as China, said Kava.
Crude oil prices
edged to $120 a barrel on Monday after a weekend refinery strike
closed a pipeline system in Britain amid supply outages in Nigeria,
The Associated Press reported.
Reach the
reporter at fili@samoanews.com.
© Osini Faleatasi
Inc. dba Samoa News reserves all rights.
|