CNMI may get help on rising fuel prices

The commerce department is now in the process of collecting data on the importation of petroleum products into the Northern Marianas, which may intensify government efforts to minimize the effects of rising fuel prices on the local economy.

The commerce department’s move came following a request for information from a regional advisory group that deals with the importation of petroleum products, according to Central Statistics Division acting Director Isidro R. Ogarto.

Mr. Ogarto said his office is now coordinating with concerned government agencies to fast-track the collection of the needed information in order to facilitate the assistance offered by the Petroleum Advisory Council.

“The PAS is inquiring information on the importation of petroleum products into the CNMI. This information is required to investigate whether or not they can help us in making savings in the costs of the imported products,” said Mr. Ogarto.

According to the statistics official, PAS is asking that the CNMI government furnish the organization with historical data to review fuel importation trends on the island and highlight areas where savings can be made.

The statistics office is asking the assistance of the CNMI Customs Division and the Commonwealth Ports Authority, which have good records on the entry of all imported items into the Northern Marianas including petroleum products.

“With the current high cost of the petroleum products, this service can be very beneficial to the Northern Marianas,” said Mr. Ogarto, adding that he has already communicated with the Customs Division and the CPA for the extraction of the necessary information.

The fourth since February this year, oil giants Mobil Oil Mariana Islands and Shell Marianas have recently increased fuel prices, citing trends in both global and regional markets.

Regular unleaded gasoline now costs $2.129 per gallon, while the price of premium gasoline has gone up to $2.219 per gallon. Diesel is currently priced at $2.059 per gallon while kerosene is worth $3.609 per gallon.

Economists are concerned that although increasing prices of petroleum products remain confined in gas pumps, airline tickets and transportation costs, their effects will soon translate to further contraction of the CNMI economy in terms of higher commodity prices.

Northern Marianas distributors of items imported from the mainland United States and other countries are starting to feel the pinch of skyrocketing oil prices, reporting a sharp increase in the cost of moving the commodities from off and within the island.

If oil prices stay high for months, the impact could grow as consumers pay more for basic commodities.

Local wholesale businesses and distributors have started coughing up higher budget for the forwarding of the imported items from the point of origin to Saipan ports, and from the harbor to the warehouse.

Higher fuel costs for transporting products will eventually prompt wholesalers to raise delivery charges. Exporting companies are also expected to consider raising their destination charge for shipment of products.

Analysts predict that wholesalers may soon pass on the added cost to retailers. End-consumers will eventually be burdened to carry the additional expense through increased shelf prices of commodities.