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Fuel surcharge fee rollback urged
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Posted on Dec 15 2005
The Saipan and Northern Islands Municipal Council has called for a rollback of the Commonwealth Utilities Corporation’s fuel surcharge, in light of a recent reduction in pump prices.
The municipal council addressed the call to Gov. Juan N. Babauta, whose state of emergency declaration for CUC will remain in effect until tomorrow, Dec. 17.
In a resolution, the council said the imposition of a fuel surcharge was justified, given the rapid increase of fuel prices worldwide and the needed repair to the power plang generators.
“The sum of $5 million appropriated annually by the Legislature to cover the government utilities was insufficient and a justification to substantiate the imposition of fuel surcharge fee,” the council said.
The members also expressed support of Babauta’s decision to place CUC under state of emergency. The governor exercised sound judgment when he decided to control the operation of CUC “to prevent a power catastrophe,” they added.
However, they added, a rollback was necessary to reflect the decreased fuel prices in the CNMI.
“[T]the members of the municipal council supported and endorsed Gov. Juan N. Babauta’s CUC emergency declaration for and in the interest of preventing power and other catastrophic mess, but pray to the wisdom of [the governor] to roll back the CUC fuel surcharge fee to commensurate with the decrease to fuel prices in the CNMI,” a portion of the resolution read.
Shell and Mobil, the two oil companies doing business in the Commonwealth, recently reduced pump prices by six cents per gallon.
Both companies implemented the cost reduction after making successive upward price adjustments.
CUC currently charges all customers a fuel surcharge at 3.5 cents per kwh.
