Gas prices now at $5.85 to $6.70 on Rota and Tinian

Rota and Tinian motorists now pay anywhere between $5.85 and $6.70 a gallon, much higher than the $4.909 to $5.319 a gallon that their Saipan counterparts are paying. Overall, the CNMI has the highest gas prices among U.S. states and territories.

Among states, gas prices range from $2.967 a gallon in Wyoming and $3.027 a gallon in Montana to $4.149 in Hawaii and $3.931 in Alaska. Guam’s regular gas is $4.739, while American Samoa’s price is below $4.50.

On Rota, regular unleaded gasoline is now $5.85 a gallon at both Sasanhaya Service Station and Luta Gas because of a recent 10-cent hike. Diesel at Sasanhaya Service Station remains at $6.70 a gallon.

“We have the highest gas prices in the Pacific Rim, and yes, among states and territories. And you have to remember that on Rota, it’s not only gas that’s expensive, but all other commodities too,” said Rota’s Bayview Hotel owner Julian Calvo in a phone interview yesterday.

Calvo said with the recent 10-cent gas price hike on Rota, Bayview Hotel has to pay more for the same amount of gas to transport hotel clients.

“The number of people visiting Rota is decreasing. Even our own people here leave the island because everything costs too much, even power and water bills,” he added. Calvo said it’s as if he’s spending 50 percent for power, and another 50 percent for all other aspects of hotel operations.

On Tinian, Islander Rent-A-Car is also feeling the brunt of another 10-cent hike.

“It’s an added cost not only to us, but also to our customers. We have to fill the tank, and customers also have to do the same when they return the rented cars,” said an employee at the car rental.

Tinian’s regular unleaded gasoline now costs $5.859 a gallon, up from $5.759 a gallon, while diesel remains at $6.349 a gallon based on prices at Tinian Fuel Services.

The CNMI’s isolated location and the high cost of transporting products, especially to Rota and Tinian, all add up to much higher prices on these two islands compared to the capital island of Saipan and the rest of the United States.

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.