Gas prices
close to $4 per gallon at the pump
by Fili Sagapolutele
Samoa News Correspondent
Don't be surprised
when the next time you get gasoline, the price is close to $4
per gallon, because of the new maximum allowable price, or, MAP,
which shows a drastic increase for American Samoa.
"The is
the biggest increase in the MAP, ever," said Sione Kava
with the Office of Petroleum Management. "And the drastic
hike is something that we cannot control locally as the price
of crude oil skyrockets, affecting everyone worldwide."
The new MAP,
released Sunday, has gasoline at $3.48 per gallon, an increase
of 21 cents per gallon from the previous MAP. Kava said the average
retail price, as of last week, was around $3.57 and he expects
the new MAP to hike the retail price to about $3.88-$3.89 per
gallon which includes labor and other costs, tacked on by gas
stations.
Two gas stations
visited by Samoa News on Saturday had their gas price at $3.71-$3.72
per gallon and the new MAP would increase the price to almost
$4 per gallon.
The Associated
Press reported on Saturday that the average gasoline price nationwide,
as of Friday, has reached $3.28 per gallon.
Local residents
have witnessed that large vehicles are taking up too much money
to fill up the gas tank. For example, one male resident told
Samoa News yesterday that he'd usually spend about $40 to fill
up his "new and shiny" double cab pick-up truck.
"But my
most recent visit to a gas station for a fill up, it came to
$80 and there was still a quarter gas in the tank," he said.
The only advice
Kava could offer at this point, is for motorists to drive only
when necessary and use public transportation - the colorful aiga
bus.
Other petroleum
products sold in the territory also increased.
The overall MAP
for diesel fuel saw an increase of 21 cent per gallon with road
diesel $3.78; boilers/generators $3.46; commercial fishing vessels
$3.26 and other marine diesel $3.38.
The new MAP for
jet fuel and kerosene jumped by 22 cents to $3.47 per gallon,
worrying the airline industry as crude oil prices reach an all
time high of $110 a barrel.
Local industry
sources says the hike in jet fuel could result in fare increase
for local airlines. "The airlines cannot continue to absorb
the high fuel prices and it will have to be passed on to consumers,
either raising air fares or their fuel surcharge fee which is
something airlines around the world are doing," said sources.
Kava said the
biggest hike for the local MAP is the base price, which is the
price American Samoa pays at the refinery, because of the crude
oil price.
"As for
the future, it's anybody's guess at this point. But it appears
that oil prices are not coming down soon," said Kava.
Reach the
reporter at
fili@samoanews.com
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