News Release

Petroleum Micronesia Kolonia, Pohnpei January 2, 2009

KOLONIA, Pohnpei (Petroleum Micronesia) — The Federated States of Micronesia Petroleum Corp. has reduced the wholesale prices for kerosene, diesel and gasoline products across the three states.

“This reduction applies to our wholesale and retail customers. The reductions are somewhat smaller than previous ones, however, if retailers pass on the entire reduction we should finally see prices at the pump in Pohnpei lower than $4/gallon,” said the corporations chairman William Hawley.

The price of oil products in the international market remained stable in December.

Current crude oil markets are weak. However, West Texas Intermediate crude futures for June 9 settled at around $50 per barrel, signaling where traders view markets to settle following OPEC’s decision to cut global production by 2.2 million barrels per day production on Jan. 9.

OPEC Secretary General Abdalla al-Badri defended the decision of the producer group in Oran, Algeria, in December saying the agreement would need two months to be digested before oil markets would react, and that the new output allocations would effectively remove 2.2 million barrels per day from an oversupplied market.

 “OPEC is doing all it can to influence the markets and to push oil prices back up to what they believe to be the ‘fair price’ of $75 per barrel. We are monitoring the markets closely and believe the next two months could prove to be a critical turning point in the markets and so we remain cautious,” said Hawley.

The new prices took effect on Christmas and is expected to have a positive effect on all aspects of the FSM economy.

The public can expect these savings to be passed through to the pump within a week, and to various local goods and services over coming months, Hawley said.


Rate this article: 
No votes yet

Add new comment