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World fuel market drives up local costs at the pump and ASPA

CHART OF OIL PRICES
reporters@samoanews.com

Pago Pago, AMERICAN SAMOA — The cost of a kilowatt-hour (kWh) for electricity has increase by 30% since January 2021, according to the America Samoa Power Authority (ASPA) in a brief statement, where they also released the monthly “System Rate” or kWh cost of electricity, for November 2021 bills.

“The cost of fuel to generate electricity is beyond ASPA's control. The recent spike in fuel costs, noticeable at the gas stations as well, has increased the cost of the kWh rate since January 2021 by 30%,” said ASPA .

“ASPA continues to explore renewable energy options for American Samoa with Wind Turbine technology as well as Solar Photovoltaic Panels (PV),” it says. “Until then, we are at the mercy of global fuel market prices and the many challenges faced with shipping & higher costs of materials around the world.”

In the monthly rate notification dated Nov. 16th, ASPA explained that the “Fuel Surcharge Rate” changes monthly due to the fluctuation fuel costs in the world fuel market.

“As the cost of fuel at gas stations increases, so does the cost of fuel ASPA uses to generate electricity,” the authority said, and explained that the fuel surcharge is approximately 70%-75% of the total kWh price.

And this is considered “pass through” revenue because it goes directly to pay the local fuel suppliers for fuel consumed at the five power plants in Tutuila, Manu’a and Aunu’u.

Break down on the last fuel cost hike for electricity is on ASPA’s website (www.aspower.com) and its Facebook page.