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Gas prices up again by 10 cents
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Posted on Jul 06 2021
With the upward trend in fuel prices worldwide, the CNMI won’t be seeing any price rollback anytime soon, with local gas prices increasing by 10 cents again in less than a month.
Mobil Oil Marianas led the way early last Friday, July 2, raising its price per gallon of fuel by 10 cents. Shell Marianas followed suit the next morning.
From $4.72 a gallon, Mobil Oil Marianas hiked its price to $ 4.82 a gallon for its Extra fuel. Mobil also raised its Supreme fuel from $5.17 a gallon to $5.27 while its diesel fuel also went up from $4.78 a gallon to $4.93.
According to a 27-year-old motorist, it is upsetting to get gas and see that prices are up again in less than a month. “Ten cents may be small, but it adds up. Instead of using that extra cash to put food on the table for my family, I have to use it on gas because how else will my wife and I make it to work?” he said.
The motorist added that he used to be able to fill up his car with just $40. Now, it costs nearly $50 to bring his vehicle to full tank.
With the increase in fuel prices, the Commonwealth Utilities Corp. has also increased its fuel adjustment charge or FAC. As a result, the previous FAC rate of $0.17341 per kWh increased to $0.19355 per kWh effective last week, July 1.
The FAC is one of two components that make up the CUC Electric kWh Rate, which is used to purchase fuel. The second component is the CUC base rate, which is used to fund operations, projects, and debt service. The base rate has not been increased since April 17, 2014.
CUC is required, pursuant to an order previously issued by the Commonwealth Public Utilities Commission, to adjust, up or down, the FAC pass-through rate when the Mean of Platts Singapore monthly pricing equals or exceeds a 4.5 % differential of the average per gallon cost of fuel used in the calculation of the current FAC rate.
CUC first instituted the Levelized Energy Adjustment Clause in 2009 to recover fuel and fuel related costs, a system also used by power providers in Guam and the U.S. Virgin Islands.
In May 2015, the CPUC authorized CUC to change the name of LEAC to FAC to provide customers a more accurate description of the electric rate.
