POHNPEI, FSM - Following a significant drop in international oil prices, FSM PetroCorp has announced it will reduce wholesale fuel prices in the FSM between 20 to 35 cents per gallon, mirroring price decreases observed across the region.
FSM PetroCorp manages and operates fuel terminals and ancillary fueling services in the aviation, marine and inland market in Kosrae, Pohnpei, Chuuk, Yap and Guam and is the largest energy provider in the country. It has a medium-term pricing model that is in alignment with the FSM strategic development plan goal calling for 'stable and reasonable energy prices for homes, business and government'.
"As a locally-owned and operated company we are mindful of the impact of fuelprices on local economic development and growth. We cushioned the price increases for as long as we could when prices were rising, and passed on the savings as soon as we could when prices started to fall," stated Vital Board Chairman, William Hawley.
Global oil prices have traded below $100 per barrel for approximately a month, down from a high of over $135 a barrel this year. The shortterm outlook for the remainder of the year continues to foresee high volatility in prices.
"We are pleased to pass on these price decreases as they are reflective of our anticipated lower costs of importing fuel. If prices continue to stay at these levels we may be able to pass on further reductions to our customers. However, I must caution the public, we have seen these trends before, massive decreases, matched with slow, gradual and consistent market recovery," stated the Chief Executive Officer, Jared Morris.
The price decreases are expected to offer short-term relief on utility tariffs throughout the FSM, however, the longer term outlook for oil prices signal higher prices than currently commanded in the market.
FSM PetroCorp has recently entered into the field of renewable energy, most notably, it has recently requested expressions of interest to improve the energy efficiency of its operations and to construct solar arrays to partially power the five main terminal facilities it operates. Within eight years it aims to meet the energy requirements needed to distribute petroleum products throughout its terminals from entirely renewable sources.