Fuel prices increased anew

Motorists are in for a sticker shock today when they gas up at their local gas stations. Mobil and Shell have implemented another round of price increases, inching pump prices to just a few cents below $3 a gallon.

Mobil’s price adjustment of up to 6 cents took effect yesterday, while Shell Marianas Inc. announced that it would also increase gallon prices of fuel by 7 cents.

At full-serve rate, Mobil gas stations in the Northern Marianas now retail super gasoline at $2.959 per gallon; unleaded gasoline, $2.859 per gallon; and diesel, $2.849 a gallon. Self-serve rates are slightly lower at $2.759, $2.649, and $2.759, respectively.

“The cost of refined product continues to rise primarily as a result of crude oil price increases,” said Mobil Oil Mariana Islands Inc. president Jeff Borja in a media release. “U.S. light crude recently closed at a record peak of $55 per barrel.”

Shell Marianas president Phil Stalker issued a similar statement regarding new retail price increases that would take effect today.

“Since our last announcement, the price of crude oil has continued to rise through $55 per barrel which combined with unabated regional demand to substantially increase our cost of refined products in Singapore,” Stalker said. “We continue to monitor the market in Singapore for indications of a pull back and will act appropriately as soon as possible.”

With a gallon price adjustment of 7 cents, Shell gas stations on Saipan would now retail premium and regular gasoline at $2.869 and $2.779 at full-serve rate; self-serve rates would be $2.769 and $2.669, respectively. The price of diesel would reach $2.849 per gallon.

Both Mobil and Shell have adjusted pump prices by at least nine times since January this year.

“When assessing price increases, we consider incremental changes, recognizing that our customers need time to adjust spending patterns to address the surge in prices brought on by world events,” Mobil’s Borja said. “We continue to encourage our customers to keep their vehicles well maintained to help improve fuel efficiency.”

The series of increases in fuel prices have already impacted the prices of many commodities and the costs of freight and business operations, among many others.

CNMI consumer counsel Brian Caldwell recognized the ripple effect of increasing fuel prices. “However, it is difficult to know in uncompetitive markets how much of any given price increase is actually attributable to the higher cost of fuel. Undoubtedly, some merchants use increased fuel costs as a pretext for raising the price of their goods over the competitive level,” he said in a recent interview.

Caldwell said his office has yet to receive any feedback from the Federal Trade Commission regarding the complaint he filed regarding Mobil’s retail prices. Last April, Caldwell initiated a letter/complaint to Karen Berg, coordinator for State/Federal Relations of the FTC’s Bureau of Competition, stating that fuel prices in the Northern Marianas are very high.