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Shell follows suit; hikes fuel prices
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Posted on Aug 20 1999
As expected, Shell Marianas yesterday increased its fuel price by 5 to 6 cents per gallon, a day after Mobil Marianas started its price adjustments.
Shell stations on Saipan are now selling premium unleaded gas at $2.059 per gallon, regular unleaded at $1.989, and diesel fuel at $1.829.
However, Shell card fuel adjustment will take effect on Aug. 23, 1999.
This is the fifth time that Shell increased its price for this year, with upward adjustments averaging 3 to 5 cents per gallon., according to James Blend, Shell Marianas Manager.
Overall prices in 1998 decreased by 18 cents per gallon, but fuel dealers were forced to carry out an upward adjustment due to the increase in the CNMI Liquid Fuel Tax in the same year.
“We regret having to move prices in light of the current economic times, but we ask you to understand that these changes are a function of current market trends. Please bear with us as we are struggling to maintain as stable a pricing structure as possible,” said Jeff Boyer, marketing area manager.
Mobil has attributed the price movements to the regional and global fuel market price increases as the Organization of Petroleum Exporting Countries cut down its quota by several millions per day, resulting in a nearly 100 percent jump since April of this year.
Likewise, regional refineries have reduced their production, which has led to about 25 cents per gallon increase since the beginning of the year.
The other day, Mobil hiked prices of its petroleum products to cope with the market trends.
Spot gasoline prices have hit levels not experienced by consumers since mid-1997, said Abi Adigun, Mobil’s vice president and sales manager.
