Expect to pay more at the pump with wholesales prices on the rise

Pago Pago, AMERICAN SAMOA — The new maximum allowable price (MAP), or wholesale price, for land diesel and unleaded gasoline each increased by 29 cents per gallon, effective Mar. 15 compared to the previous MAP last month.

This is according to ASG Chief Petroleum Officer, Lisa Tuato’o, who is also director of the Office of Disaster Assistance and Petroleum Management (ODAPM), in response to media questions, as motorists voice concerns to their lawmakers, and others, as prices at the pumps continue to increase due to global price hikes.

The ODAPM survey on Mar. 9 of nine gas stations on Tutuila shows diesel prices the lowest at $4.27 per gallon and the highest at $4.44 per gallon. For unleaded gaoline, the lowest price found is $4.19 and $4.30 the highest.

Effective Mar. 15 the MAP for unleaded gasoline is $3.79 per gallon while land disease at $3.88. Gas station owners add on their over-head costs, or mark-up, to cover expanses — resulting in the retail price at the pumps.

Information on the ODAPM website states that while American Samoa has one of the lowest fees, taxes and rents in the U.S and the Pacific islands, it has the highest mark up on Local Retail Price.  For example, the average current mark up at gas stations is 60 cents per gallon on unleaded gasoline and $1 per gallon on diesel. 

Tuato’o — responding to media queries — said yesterday that it’s “safe to say we can expect to pay a little bit more per gallon at the gas stations since gas prices have and keep increasing.”

She shared her recent response to an inquiry from Rep. Samoa Meleisea and his colleagues that the increase in fuel prices "is in light of the global market oil prices affecting the increase of crude oil prices in Singapore where we get our fuel from, with the ongoing Russian/Ukraine war and the U.S. ban on Russian oil import.” 

“The most important factor is the Singapore crude oil price increase,” she recalled of her response to Meleisea.

Tuato’o noted in her response to the news media that U.S. President Joe Biden signed a presidential executive order on March 8 banning Russian oil imports.

She pointed out that similar to all products and services, “we can't control or dictate how much business owners can charge.  However, we still have to pay close attention and monitor so we can identify any price gouging that may occur. Should this happen, it has to be addressed promptly.”

“On the same token,” Tuato’o pointed out, “as business owners themselves need to profit, we also should understand their need to cover overhead expenses and prosper, with reasonable prices to the general public.”

In light of all this information, she commended Gov. Lemanu Peleti Mauga for his “proven leadership in these trying times” and acknowledged his foresight in maintaining the status quo by not increasing onshore costs of taxes, fees and rents added, which helps keep our MAP down.

And although the cost of living has risen to include fuel, “we should still remain fortunate in our islands where we are safe from harm, not having to relocate to an unknown country as refugees, or especially lose loved ones from war, or lose our lives from attacks and bombings,” she said in reference to refugees fleeing Ukraine due to the attacks by Russia.

“For this, we should always be grateful to God, and the U.S. country for our own freedom and safety,” she said and declared that “ODAPM continues to maintain our state of preparedness by ensuring ample supply of quality fuel for the Territory in the untimely event of disasters.”