Gas prices expected to exceed $5 per gallon after new MAP released

Pago Pago, AMERICAN SAMOA — The new maximum allowable price (MAP), or wholesale price, for land diesel and unleaded gasoline — which became effective Apr. 15 — is expected to, or has already pushed the retail price at local gas stations to exceed the $5 per gallon mark for motorists on Tutuila.

As previously reported by Samoa News, the ASG Office of Disaster Assistance and Petroleum Management (ODAPM), conducted on Mar. 9 a survey of nine gas stations on Tutuila.

And it showed at the time that diesel prices at the lowest were $4.27 per gallon and the highest at $4.44 per gallon. For unleaded gasoline, the lowest price found was $4.19 and $4.30 the highest.

More than a week ago, the operator of one of the local gas stations sent out an email message to certain Chamber of Commerce members — and circulated to others including Samoa News and some lawmakers — about the expected hike in the new MAP effective Apr. 15.

It says that the MAP for unleaded gas would have an increase of 56 cents per gallon and diesel would increase by 70-80 cents. “On the retail side we are now crossing into the five dollar mark,” the operator pointed out.

“With the new price coming out, this will tremendously affect the prices on goods and services. Increases on ASPA utility bills should show up on June statements. With diesel at the $5.50 mark, prices on construction projects will increase,” the operator said.

Samoa News shared this information with ASG Chief Petroleum Officer, Lisa Tuato’o, who is also ODAPM director, and sought comments as well as the new MAP — which confirmed the increases over the MAP released on Mar. 15.

According to ODAPM, effective Apr. 15 the MAP for unleaded gasoline increased 0.5619 per gallon; land diesel hiked to 0.7753 per gallon; and the MAP for each kerosene and jet fuel products,  both increased to about 76 cents per gallon.

(Samoa News points out that there are still local families who use kerosene in their homes.)

“Although the global market continues to show an increase in our wholesale prices or MAP due to the Russian/Ukraine war that bumped up the price per barrel, in addition to refinery and transportation costs, our onshore costs remain the same,” Tuato’o said in response to the Samoa News request for comments.

“Meaning, I appreciate the Honorable Governor's decision to maintain the onshore costs as is and have not increased them as a way to keep fuel costs affordable for the people of American Samoa,” she noted.

Tuato’o reiterated what she shared previously that “similar to all goods and services, the government does not dictate the prices the items are sold for but it surely monitors price gouging especially in these trying times.”

ODAPM said on its website that while American Samoa has one of the lowest fees, taxes and rents in the US and other Pacific island, “it has the highest mark up on Local Retail Price”. 

It says that the average current mark up at the gas stations is 60 cents per gallon on mogas (auto gas) and $1 per gallon on diesel — which means: MAP + Mark-Up = Retail.

ODAPM had said in the past years that American Samoa and other Pacific nations get their fuel products from Singapore.

National news outlets have reported in the past that retail in many parts of the U.S have the price for unleaded gasoline at $5 or more.

According to AAA data, as of Apr. 18, the national average is $4.08 per gallon and the average in Hawai’i, is $5.22 per gallon. (https://gasprices.aaa.com)