Shell hikes fuel prices anew

Thirty-two-year-old Herbit Villagomez could not help but complain when he parked his newly acquired pickup truck to gas up early last night. This was soon after learning that Shell retail stations on Saipan would again raise gas prices by 3 cents a gallon midnight last night.

Villagomez, a resident of Upper Navy Hill, said that, due to the series of gas prices increases since the beginning of this year, he was forced to sell his six-cylinder pickup truck two months ago and had it replaced it with a more fuel-efficient four-cylinder vehicle.

Another motorist who requested anonymity also lamented the increasing trend in gas prices.

“They’re too much already. People will now be working for gas only. Some will probably just ride on their own bikes,” the motorist said. “Lawmakers should do something about this.”

Shell stations now peg regular and premium gasoline’s gallon prices at $2.429 and $2.529, respectively, at self-serve rate. Full-serve rates are slightly higher at $2.559 and $2.649. Shell also raised the gallon price of diesel by 5 cents, on top of the previous $2.479, for a new rate of $2.529.

Shell Marianas president Phil Stalker attributed the increase to the rising cost of crude oil, which he said have broken record highs.

“In addition, the PRC’s [People’s Republic of China’s] explosive economic growth rate has put extraordinary pressure on refiners to meet the region’s need for refined oil products. The net result has been a tremendous increase in the cost of refined gasoline and oil products available to Shell,” Stalker said in a media release.

As before, Stalker assured that Shell would roll back fuel prices “should the price of refined product decline.”

The new round of price increases by Shell is its fifth for the year. It first raised gallon prices by 7 cents in January, before increasing them again by 5 cents three times, and then 3 cents this time. Shell’s cumulative gallon price adjustment for the year has now reached at least 25 cents.

Shell’s decision followed that of Mobil, which recently hiked gas prices by 5 cents a gallon. Mobil has raised its pump prices six times since January this year, increasing gallon prices first by 3 cents, and then 4 cents, before taking on four rounds of 5-cent adjustments. The price increases resulted in a cumulative gallon price adjustment of 27 cents this year.

Mobil gas stations on the islands now retail regular and super gasoline at $2.589 and $2.679 per gallon at full-serve rate. Self-serve rate for regular and super gasoline have reached $2.379 and $2.479, respectively.

The latest two price hikes for both Shell and Mobil came about even as the Attorney General’s Office filed a complaint before the Federal Trade Commission, saying that pump prices on Rota and Tinian are even higher.

CNMI consumer counsel Brian Caldwell particularly listed in the complaint the gas prices of all Mobil stations on Saipan, asking the FTC’s assistance in ascertaining whether or not anomalies in trade practices were actually occurring in the Marianas. Mobil had denied engaging in unfair trade practices and had said that it did not violate any law.

The House of Representatives has yet to introduce a divorcement measure—a matter being looked into by Rep. Ray Yumul, the House committee chair on Commerce and Tourism. Yumul had also said he would look into possibly introducing a measure that would set a ceiling on local gas prices.

The AGO earlier said complaints about gas prices could be sent by email to attorneygeneral@saipan.com or in writing to this address: Office of the Attorney General-Civil Division, Caller Box 10007, Capitol Hill, Saipan, MP96950.