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Fuel prices are killing household wallets

Patrick Ti'a Reid
There’s been a 73% jump in fuel MAP since February
reporters@samoanews.com

Pago Pago, AMERICAN SAMOA — The American Samoa Democratic Party is calling attention to the sharp increase in fuel prices and the growing impact it is having on the cost-of-living for families across American Samoa.

It comes at a time when the American Samoa Power Authority (ASPA) has announced an impending increase in the fuel surcharge, which is expected to substantially impact electricity bills for residents and businesses starting in May.

Solutions to managing this huge jump in local fuel prices vary from the ASDP and ASPA.

For ASPA, it advises the local consumer to implement energy conservation strategies wherever feasible — this includes simple measures such as turning off lights when not in use, using energy-efficient appliances, and being mindful of heating and cooling.

For ASDP, it is encouraging local leaders to explore common-sense solutions that can help provide relief to residents and small businesses, including:

  •        Temporary fuel tax relief measures that might help reduce prices at the pump;
  •        Subsidizing transportation costs to incentivize carpool or alternative transportation options;
  •        Increased investment in renewable energy and energy independence initiatives; and
  •        Greater transparency and oversight regarding fuel pricing and consumer protections.

“At a time when costs continue to rise, leadership should focus on solutions that alleviate everyday cost-of-living expenses for our families,” ASDP Chair Patrick Ti'a Reid stated.

The ASDP points out in its press release that for many working families, the increases are translating into major financial burdens:

Per recent reports, the Maximum Allowable Price (MAP) is 5.9753 — a 73% increase in just a few months since February. Prices at some local gas stations have also reportedly climbed as high as $5.49 per gallon.

  •        A 20-gallon truck can now cost nearly $110 to fill up;
  •        A 25-gallon truck can cost over $137;
  •        And a 30-gallon tank can cost nearly $165.

 The Party noted that higher fuel costs also impact shipping, grocery prices, small businesses, fishermen, transportation workers, and electricity costs throughout the Territory.

ASPA

According to ASPA, in its press release, for residential customers, the electricity rate will rise significantly from 38 cents per kilowatt-hour in April to 46 cents per kilowatt-hour in May.

The overall system rate, which includes both the base rate and the fuel surcharge, is composed of a base rate of 9 cents per kilowatt-hour and a fuel surcharge of 36 cents per kilowatt-hour.

(Samoa News points out that consumers will see this reflected in their bills that come out in June for May power readings).

ASPA notes its escalating surcharge is related directly to global fuel prices — it’s how they pay their fuel supplier; while the raised electric base rate is how they pay their operating expenses, maintain reliable service, and invest in vital infrastructure upgrades to enhance the overall electric grid. (Read elsewhere of ASPA finances for FY2025.)