20-cent gas price cut on Saipan

Motorists got another reprieve at the pump after Mobil Oil Mariana Islands reduced its pump prices on Saipan by 20 cents a gallon at 4pm yesterday, bringing to 40 cents the total price cuts since May 8.

Regular unleaded gasoline at Mobil service stations is now $4.759 a gallon, down from $4.959 a gallon.

Super unleaded gasoline now costs $5.079 a gallon, from $5.279 a gallon.

Diesel, meanwhile, is now $5.119 a gallon, compared to the previous price of $5.319 a gallon.

Shell Marianas has yet to change its prices as of early last night, although the two oil giants have historically mirrored each other’s price changes.

Rodel Geronimo, 32, said it’s a “big relief” that gas prices went down by 20 cents especially among those whose work hours have been drastically cut.

“It’s been very difficult for us to make ends meet. Our work hours are now down to 25 hours a week instead of the normal 40 hours. People ask us, ‘how do you survive that?’ Every cent counts. So every price reduction is a big help. Every day, I drive from Chalan Kanoa to Garapan and back. My budget for gas can now be stretched a bit and I hope there will be more price cuts,” Geronimo told Saipan Tribune.

He said he spends some $70 on gas every week. “But when it hit over $5.15, my $70 was only good for less than a week. It’s really hard for us,” he added.

In Guam, Mobil gas stations dropped their pump prices by 25 cents a gallon yesterday.

Sen. Juan Ayuyu (Ind-Rota), chairman of the Senate Committee on Public Utilities, Transportation and Communications, welcomed the price cut, adding that it will be good not only for motorists but also for utility consumers.

“Every time fuel cost goes down, the Commonwealth Utilities Corp. is obligated to reduce their fuel cost for their consumers. Last year, CUC had to credit back to consumers some $6 million because fuel prices were lower than their estimates. I also hope gas prices will continue to go down,” he said.

Ayuyu, who hails from Rota, said he hopes Rota and Tinian pump prices will also follow suit soon.

“There’s just no excuse for Mobil not to soon lower their prices on Rota and Tinian, too,” the senator added.

Rota has the dubious distinction of having the most expensive gas on American soil. As of yesterday, Rota’s Sasanhaya Service Station was selling regular gas for $5.90 a gallon and $6.70 a gallon for diesel.

Oil hovered below $84 a barrel Tuesday in Asia, wavering near an eight-month low. Crude fell below $82 Monday, the lowest since October. Expectations that a global economic slowdown will reduce demand for crude dragged prices down 23 percent in the last month.

Mobil earlier said that prices of gasoline are determined by a number of factors, including changes in the world market wholesale prices of gasoline, regional gasoline supply and demand balance, transportation costs, insurance, local distribution, marketing costs, government regulations, taxes, competitive market forces, and investments in retail stations and distribution terminals.

Mobil and Shell do not issue advance notices for any gas price change. (With AP)