Saipan regular gas now $5.059

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Posted on Feb 16 2012
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Minimum wage earner needs to work an hour for gallon of gas
By Haidee V. Eugenio
Reporter

Two bicyclists pass by a price display at a Mobil service station in Garapan yesterday morning.  Saipan's regular unleaded gasoline now matches the CNMI's minimum wage of $5.05 an hour following a gas price hike of 9 to 15 cents a gallon. (Haidee V. Eugenio)  Saipan’s cheapest gasoline blew past the psychological barrier of $5 when Mobil Oil Marianas’ regular unleaded gasoline shot up to $5.059 a gallon on Tuesday night, and Shell Marianas was expected to follow suit last night.

The 15-cent increase on Tuesday night means that Saipan motorists are now paying 35 cents more than what they used to pay at the start of the year because of three rounds of prices changes since January.

Saipan’s super unleaded gasoline is now $5.379 a gallon, up also by 15 cents.

Diesel, meanwhile, went up by 9 cents or from $5.319 to $5.409 a gallon.

CNMI gas prices are the highest in the United States where gas prices averaged $3.477 a gallon on Tuesday, as well as among U.S. territories.

Guam prices also went up starting on Tuesday night, with regular gas now at $4.879 a gallon.

For minimum wage workers in the CNMI, they have to work an hour for $5.05 just to be able to buy a gallon of regular gas.

“There goes my hourly salary,” said Edwin Santos, of Susupe, as he was buying gas for a company vehicle at the Mobil-Garapan service station yesterday morning.

Santos said his budget for gasoline has been slowly creeping up on his budget for food, other grocery items and for his four children.

“I might just start using a bicycle to go to work,” the single father said.

Mobil and Shell do not issue explanations or advance notices about any price changes.

“It’s going to be very hard for everyone, but it would be more painful for those who earn less. Those earning minimum wage of $5.05 an hour need to work a full hour to buy a gallon of gas,” said businessman Efrain Camacho, as he was buying gas at the Mobil-Garapan service station yesterday morning.

Camacho said while he has read in news forecasts that gas prices will increase, “I didn’t think it’s going to be this soon on Saipan.”

Analysts said gas prices in the United States will go up in the summer, pointing to financial uncertainties in Europe and Iranian politics as threats to prices at the fuel pump.

“What’s interesting too is that the rates go up quickly but if petroleum prices go down worldwide, prices here are slow to go down or not at all,” Camacho added.

But he said “it takes the same number of personnel, the same type of vessel to deliver the fuel whether for a population of 40,000 or 400,000.”

Camacho said that he and his wife monitor their son’s car mileage and limit his gasoline allowance as one way to minimize their gas expenses.

For many Saipan motorists, they just want to close their eyes to ward off the pain at the pump.

“I’m surprised and disappointed,” said another resident who could afford only $5 for gas, less than a gallon He said he didn’t notice that the price went up from $4.909 to $5.059.

Alvin Alvarez, of Chalan Laulau, said a 15-cent increase in gas is just too much to bear these days when all other bills are also going up.

“We spend about $50 a week for car gas, and that’s not even full tank. With this 15-cent increase, our $50 could buy much less fuel,” the father of two said, adding that his household has been trying to limit vehicle use and tighten expenses on other things.

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