PRESS STATEMENT
APRIL 21, 2020
FSMPC DECREASES PRICE TO RETAILERS BY 25CPG
Pohnpei, Federated States of Micronesia – Vital FSM Petroleum Corporation announces to its customers a twenty-five cent per gallon ($0.25cpg) decrease to the wholesale prices of diesel (ADO), unleaded gasoline (ULP), and dual purpose kerosene (DPK). This price decrease goes into effect today, April 21, 2020.
According to the U.S. Energy Information Administration (EIA), “the COVID-19 pandemic has caused significant changes in energy fuel supply and demand patterns. Crude oil prices, in particular, have fallen significantly since the beginning of 2020, largely driven by the economic contraction caused by COVID-19 and a sudden increase in crude oil supply following the suspension of previously agreed upon production cuts among the Organization of the Petroleum Exporting Countries (OPEC) and partner countries.”
FSMPC Chief Strategy and Investment Officer, Mr. Mathias Lawrence confirmed, “Consumers across the FSM should be very familiar with our stable pricing practices. Domestic oil prices do follow global trends, but due to long supply chains and the higher levels of inventories that we carry, it can take up to three months for us to fully realize the impact of price increases or decrease domestically.”
Motorists in neighboring islands like Guam and Palau have seen this downward trend since February 5, 2020, when pump prices first dropped from $4.25 to $4.07 per gallon. According to Guam’s Pacific Daily News, Guam motorists have seen nine price drops at the pump in 2020 alone, and are now paying $3.05 per gallon of gasoline.
FSMPC Chairman of the Board of Directors Mr. Faustino Yangmog remarked, “The rapid collapse of international oil prices due to demand destruction is really unprecedented. Over the last two months we have been really focused on COVID-19 preparedness plans to ensure a consistent and uninterrupted supply of fuel into and around the country. We are now starting to see our inventory costs fall, and are pleased to pass on the first set of price reductions.”
Based on the historical data, FSMPC has maintained fuel prices at the pump within approximately $0.30/gallon of Guam. If oil prices continue to stay at these current low levels, consumers can expect to enjoy pump prices as low as $3.35 in the coming weeks.
For inquiries, email info@fsmpc.com.