PRESS RELEASE 09_2026
Vital FSMPC Advises of Fuel Price Adjustment to Maintain Continued Supply
FSM, 07th May 2026, 1500hrs. Vital FSMPC confirms that fuel supply chains serving all Federated States of Micronesia (FSM) remain secure. Current national inventory levels are stable, and there is no immediate fuel shortage anticipated. Reliable fuel supply remains critical to electricity generation, transportation, healthcare, telecommunications, food distribution, and broader economic continuity across the FSM.
However, sustained increases in international refined fuel prices, freight costs, insurance premiums, and broader supply chain disruptions continue to place significant upward pressure on fuel supply costs across the Pacific region, including the FSM.
Over the past two months, Vital FSMPC has absorbed a substantial portion of recent international fuel cost increases in support of national fuel stability and energy security. However, the sustained price increase means that maintaining current prices without adjustment would place increasing pressure on the Corporation’s financial position and its ability to secure future fuel cargoes on commercially sustainable terms and maintain continuity of national supply.
Following review through the Corporation’s governance and financial oversight processes, the Board of Directors has approved the implementation of a fuel price adjustment effective May 11, 2026. The adjustment is intended to support the continued financial sustainability of national fuel supply operations and maintain reliable fuel availability across all FSM States. The adjustment will see wholesale price increases of around $0.38/gallon for gasoline and up to $0.87/gallon for diesel. This reflects a reduction in the temporary fuel price stabilization support move from full cost absorption of recent increases, to approximately 70% absorption.
“We recognize that fuel prices affect households, businesses, utilities, and transportation operators across the FSM. This decision was not taken lightly. However, maintaining reliable national fuel supply remains essential to the country’s economic stability, continuity of essential services, and long-term energy security,” said Mr. Jared Morris, Chief Executive Officer of Vital FSMPC.
Vital FSMPC will continue to monitor international markets closely and adjust operational activities where possible to reduce cost pressures. The Corporation will also continue pursuing prudent procurement and inventory management practices while engaging with Government stakeholders to identify opportunities to further reduce the impact of future price increases.
Figure 1 illustrating the variability and peak of Singapore international prices ($/Gallons) between February 16th to April 27th, 2026, for ULSD, ULP and DPK with a sustained price of up to $2.00/gallon compared against pre-Conflict.
Figure 2 demonstrating that against regional benchmarks as of 1st of May 2026, the FSM continues to have stable and competitive pricing compared to the region.
For other information pertaining to Vital FSMPC, please contact us via Telephone number 320-6364 or via email: PetroCorp@fsmpc.com.
