PRESS STATEMENT 3-2022
May 9, 2022
UPCOMING PRICE MOVEMENTS FOR WHOLESALE CUSTOMERS
Pohnpei, Federated States of Micronesia – The Vital FSM Petroleum Corporation (FSMPC) wishes to advise
our valued wholesale, Authorized Reseller customers that there will be a minimum $0.60 per gallon increase implemented over the next three months if prices remain at current elevated levels. Each price movement will increase the wholesale prices of unleaded gasoline (ULP), diesel (ADO), and kerosene (DPK) by a minimum of twenty cents per gallon (20cpg) in May, June and July 2022.
Vital Chief Financial Officer Ms. Cherish Mendiola advises customers: “Since February 2022, we’ve seen drastic spikes in oil prices due to the Russia-Ukraine War, and unfortunately this is resulting in further price movements in the FSM. Previously, our Pricing Framework had been satisfactorily managing the volatility of international markets. However, we are now unable to keep up with the price increases that have occurred as a result of the Ukraine crisis.”
Vital Business Analyst Ms. Sancherina Salle reported, “In monitoring regional and international prices, we are aware that FSM retail prices are still too far below the established benchmark of remaining within +$0.35cpg of Guam’s retail prices. On May 4th, the retail price for one gallon of gasoline in Guam was $5.89, while in the FSM, the retail price for one gallon of gasoline is as low as $4.90 in Pohnpei, $5.05 in Yap, and $5.25 in Chuuk and Kosrae. Compare that to other islands in the Micronesian region like Palau, where one gallon of gasoline costs $6.22, or Majuro where one gallon of gas costs $6.80, and it is very clear that prices in the FSM have grossly deviated beyond acceptable parameters within our pricing framework,” Salle noted.
CFO Mendiola concluded, “On behalf of senior management and our Board of Directors, I’d like to thank our customers for their continued cooperation. We will continue to monitor regional and international prices, and hope markets cool in the coming months.”
For inquiries, email info@fsmpc.com.