Shell hikes gas prices by 7 cents again

Beginning today, motorists gassing up their vehicles at Shell gas stations on Saipan would have to pay 7-cents more for every gallon, as Shell Marianas Inc. disclosed increasing retail prices effective last midnight.

The new round of price increases raised gas prices to up to $2.879 per gallon, less than 13 cents shy to breach the $3-mark. The price adjustment is Shell’s second for the year, making a cumulative gallon price adjustment of 14 cents in less than two months.

Besides adjusting pump prices of regular and premium gasoline by 7 cents per gallon, Shell also announced yesterday that the gallon price of diesel would increase by 5 cents.

Shell Marianas president Phil Stalker partly attributed the upward price adjustment to rising demand for crude oil and refined product in China.

“Unfortunately, we are required to raise prices once again. Upward pressure on the worldwide price of refined oil product has forced upward the price of retail petroleum products. The demand for crude oil and refined product in China continues to increase and place upward pressure on prices of petroleum products worldwide,” Stalker said in a media statement.

“Shell has no choice but to regain some of the loss associated with rising costs through a price increase,” he added.

The increases pegged the new gallon prices at the pump at $2.759 and $2.879 for regular and premium gasoline, respectively, at full-serve rate, and $2.629 and $2.759 at self-serve rate. Diesel now retails at $2.799 per gallon at full-serve rate.

“Should the price of refined product decline, Shell will reconsider its position and lower the price of fuel accordingly. We look forward to better times ahead and the reduction of the price of oil so that prices at the pump can be reduced for our consumers,” Stalker said.

Shell had rolled back pump prices on Saipan by at least four times since November last year for a cumulative gallon price adjustment of about 20 cents, before taking on the price increases for the first time this year last January 28.

Mobil Oil Mariana Islands Inc. has made no announcement of price adjustments this year.

The Attorney General’s Office said yesterday that it would continue to monitor gas prices and look into Mobil’s pricing for Tinian and Rota.

CNMI consumer counsel Brian Caldwell has asked the Federal Trade Commission to look into Mobil’s retail prices on Tinian and Rota, which breached the $3-mark despite price decreases late last year.

Caldwell said he recently met with Mobil officials, who reportedly disclosed that the company wholesales gasoline to Tinian and Rota gas stations at $2.73 per gallon. Caldwell said Mobil washed its hands off the pricing on Tinian and Rota’s Mobil gas stations.

The consumer counsel added, though, that the wholesale price appeared to be high, considering that retail prices on Saipan’s Mobil stations are as low as $2.55-some per gallon.

Mobil gas stations on Saipan retail regular and premium gasoline at $2.769- and $2.889 per gallon at full-serve rate. The Saipan stations peg the gallon prices at $2.559 and $2.689 at self-serve rate, while the price of diesel at full-serve rate is $2.819.

Caldwell said he would follow up on the FTC’s economic analysis on Mobil’s pump prices on Tinian and Rota.