Press Statement 01-2025

PRESS RELEASE 01_2025

FUEL PRICE CHANGES EFFECTIVE DECEMBER 2024 

The Vital FSM Petroleum Corporation (“Vital FSMPC”) wishes to announce new prices of unleaded gasoline (ULP), diesel (ULSD), and kerosene (DPK) which are effective since December 30, 2024. These adjustments were established based on an extensive review of global trends, domestic and regional prices. FSM continues to be directly impacted by the world market prices for refined oils and as such, any changes to the world market prices will eventually be reflected in fuel prices in FSM. The new fuel prices for ARP and Wholesale prices are as follows:

• ULP – decrease of $0.15 per gallon;
• ULSD – decrease of $0.15 per gallon; and
• DPK – decrease of $0.15 per gallon.

For most of 2024, we observed MOPS averaging at $100 per barrel for all three products of ULP, ULSD and DPK. However, Vital FSMPC maintains a pricing strategy that adjusts slower than international movements to help customers from drastic market fluctuation rates. International Price Movement As per trends, the direction of future oil prices is unclear and while OPEC plus member countries continually cut oil production to increase prices, on the contrary, the U.S. has increased its oil production, thus keeping oil prices lower than anticipated.

Figure 1 – as of November 30th, 2024, MOPS prices for ULSD = $ 89.23/bbl; JETA1= $89.41/ bbl; ULP = $79.09/bbl as shown in the graph below. The average November 2024 MOPS increased by 1% compared to October 2024.

Regional Price Comparison – ADO (diesel) and ULP As of November 30^th, 2024, the variance for ULSD pump prices between Guam and Pohnpei stands at $0.92 (Guam = $5.129/usg and Pohnpei = $ 6.05/usg).  Guam ULSD pump prices decreased by $0.10 on the 16^th of October 2024. ULP/GASOLINE As of November 30^th, 2024, variance for ULP pump prices between Guam and Pohnpei stands at $0.50 (Guam = $4.899/usg and Pohnpei = $ 5.40/usg).   Guam ULP pump prices dropped by $0.10 on the 16^th of October 2024.

Vital FSMPC has monitored and evaluated the global and regional market trends for oil products throughout the year and despite the fluctuation of rates in markets and increasing logistics and shipment costs, the domestic level prices have remained steady over the past few months.

The methodology which Vital FSMPC continues to utilize focuses on price stabilization over a period before it eventually rises or falls. Our Policy Framework allows us to stabilize domestic prices against international volatility and benchmark prices against neighboring countries pump prices. The Chairman of Vital FSMPC Mr. Faustino Yangmog stated that “Vital FSMPC’s approach towards fuel pricing allows customers to plan their spending and budget related to fuel products.” He added, “customer welfare is important when considering pricing as Vital tries to maintain customer confidence whilst also managing the fluctuations globally.” According to the Chief Risk and Compliance Officer, Mr. Johnny Adolph “there will continue to be price volatility periods, and the Vital FSMPC remains dedicated to monitoring closely the trends in international fuel markets to ensure our customers receive consistent pricing that reflects market realities while mitigating price volatility risks.”

For more information, please email your inquiries to: info@fsmpc.com