Shell hikes gas prices by 7 cents

Three weeks after rolling back of its prices, Shell Marianas decided to increase its retail prices anew by 7 cents per gallon beginning today, citing the rising worldwide price of oil.

The new round of price increases is the first one implemented on Saipan this year.

Shell Marianas president Phil Stalker said the high demand for fuel in China has placed pressure on worldwide prices of petroleum products. The world’s most populous country, China has been surging to dominate various sectors, as it continues to attain economic and military growth.

“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 release.

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

About three weeks ago, Shell rolled back retail prices by 7 cents a gallon. Shell’s decision to raise prices anew reverted back gallon prices to New Year levels.

Effective last midnight, Saipan’s Shell gas stations peg gallon prices of regular and premium gasoline at $2.689 and $2.789, respectively, at full-serve rate. The gallon price of diesel is $2.749, while self-serve rates of regular and premium gasoline are back to $2.559 and $2.669.

“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.

Before today’s price hike, Shell had rolled back prices four times since November last year for a cumulative price reduction of about 20 cents per gallon.

No similar announcement from Mobil had reached media offices as of press time, although the company had normally taken on price increases everytime Shell implements price adjustments.

Although Mobil has implemented price reductions on Saipan in the past several weeks, retail prices on Rota and Tinian have reportedly remained at over $3 per gallon, prompting the Attorney General’s Office and the Federal Trade Commission to look into the matter.

Yesterday, though, CNMI consumer counsel Brian Caldwell said he has yet to receive any reply from the FTC, which he had asked to conduct an economic analysis of Rota and Tinian’s gas prices to determine if Mobil has been involved in unfair business practices.