AGO: Feds probing gas increases

The Attorney General’s Office disclosed that the Federal Trade Commission would look into market factors affecting gas price increases in the Commonwealth.

This came even as Mobil increased its pump prices the other day by 7 cents a gallon, raising new gallon prices by as much as $3.129 after Shell implemented a similar price hike earlier this week.

The AGO is conducting its probe on whether or not fuel companies and retailers committed fraud or unfair trade practices.

A check on Mobil’s prices at a retail station on Saipan showed that some of its new gallon prices were identical with that of Shell. A staff said the price hike became effective Tuesday midnight. Mobil did not issue an official announcement of the price adjustment.

Motorists gassing up at Mobil stations now have to pay $3.129 for every gallon of premium gasoline at full-serve rate. Self-serve rate for premium gasoline is $2.969 per gallon.

A gallon of regular gasoline now sells at $3.009 and $2.839 at full-serve and self-serve rates, respectively. Diesel’s gallon prices are now pegged at $3.029 for full-serve and $2.979 for self-serve.

Shell hiked its pump prices on Saipan four times this year by a total of 28 cents a gallon. Shell first increased pump prices this year last Jan. 28. In less than a month beginning Feb. 22, Shell took on another upward price adjustment, citing the rising demand for crude oil and refined product in China. Shell raised pump prices by 7 cents for the third time this year sometime on March 24.

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 increasing them for the first time last January. Shell adjusted pump prices by 7 cents per gallon on each of four occasions this year.

Shell’s prices are now at $3.089 per gallon for premium gasoline at full-serve rate. Self-serve rate is $2.969 per gallon, the same rate as that of regular gasoline at full-serve rate. Shell’s price of regular gasoline, self-serve rate, is $2.839 a gallon, while and diesel is at $3.009 a gallon.

CNMI consumer counsel Brian Caldwell said yesterday that the FTC would look at the fuel industry’s pricing on the islands, following complaints that Mobil’s pump prices on Rota and Tinian breached $3 per gallon, when both Mobil and Shell were rolling back fuel prices on Saipan.

“The FTC has offered to take a closer look at market factors in the CNMI,” Caldwell said.

Although the subject of the complaint forwarded by Caldwell to the FTC involved Mobil’s pump prices on Tinian and Rota, he said that the FTC and his office would look into industry pricing in the CNMI, including that of Shell and Mobil on Saipan.

Caldwell noted the price increases at the pump this year. He also said that pricing factors for both Mobil and Shell are closely related, noting that both companies both source fuel from Singapore.