Good News: Prices for petroleum products continue to drop

Pago Pago, AMERICAN SAMOA — A decrease last week in the price of oil globally has resulted in another decrease in the maximum allowable price (MAP) or wholesale price of all petroleum products sold in American Samoa.

The decrease is reflected in the Jan. 1-14, 2019 American Samoa Fuel Price report, released yesterday morning by the ASG Office of Petroleum Management (OPM).

“We welcome the New Year 2019 with more savings and the consumers will have more change jingling in their pockets,” said OPM petroleum officer, Sione Kava yesterday in releasing the new MAP.

The MAP released by OPM in the past is effective from the 15th of that month to the 14th of the following month. But with the volatile market, and the changes that continue to occur in the oil industry, OPM’s previous MAP covered only Dec. 15 to Dec. 31, 2018.

According to the new MAP, effective Jan. 1-14, 2019:

•    12-cent decrease in gasoline (or Mogas);

•    6-cent drop for diesel products such as road, boilers/generators, commercial fishing vessels and other marine diesel; and

•    8-cents per gallon drop in the ultra-low sulfur for road diesel and ultra-low sulfur diesel for boilers/generators.

However, according to OPM data, there is no change in the MAP — as compared to Dec. 15-31, 2018 — for jet fuel and kerosene: $3.1078/gallon.

Regarding the average retail price, OPM said that as of the time of the report, Morris Scanlan Gas Station reported Mogas at $3.42 per gallon and Diesel at $3.79 per gallon.  However, some are still selling at the old price, said OPM.

Samoa News observed yesterday that at least three gas stations on the western side of the island had the retail price for gasoline at between $3.60 and $3.61 while diesel was at $3.90 or $3.92 per gallon — which was the same price from last week.

The OPM fuel price report points out that globally, oil prices mostly fell last week, reaching their lowest since the third quarter of 2017, as market observers have concerns that the global crude market is oversupplied.

For American Samoa’s market, Kava said the “significant drop” in the price of fuel sold by the refinery in Singapore — where American Samoa and the rest of the neighboring islands get their fuel — in November, affected the December MAP “and has continued to this January MAP.”

“Since December 15, the MAP has been kind to the territory; diesel dropped by 12-cents per gallon and gasoline dropped by 22-cents per gallon,” he said.

ASG/OPM once again reminds consumers that it does not have control over the MAP and the prices at gas stations, as the retail price is determined by the owners.