MAP sees another hugh drop
Just in time for the 4th of July holiday, American Samoa is getting another big break in the maximum allowable price (MAP), or wholesale price, of petroleum products sold in the territory.
And with the drop in the MAP, petroleum officer Sione Kava with the ASG Office of Petroleum Management hopes that the new retail price will be reduced — for the first time in a long time — to under the $4 per gallon mark. When the last MAP was released on June 16, it was an 18 cents per gallon decrease, which translated as into an average retail price of around $4.18 per gallon around the island.
The new MAP went into effect on Sunday, July 1, and Samoa News visited two gas stations yesterday morning, which were still selling at $4.18 or $4.19 per gallon.
Kava said the new MAP has gasoline at $3.49 per gallon — a decrease of 24 cents per gallon.
“The drop in the MAP does not necessarily mean a drop, or a similar drop in the price we pay at the gas station. We may just see the price at the pump drop under the $4 mark for the first time in a long time,” Kava told Samoa News yesterday afternoon.
For jet fuel and kerosene, the new MAP is $3.48 per gallon, a drop of 21 cents per gallon according to Kava.
For diesel fuel, the new MAP has road diesel at $3.75 per gallon; boilers/generators (used by the Tafuna Power plant) at $3.43 per gallon (June’s MAP was $3.86); commercial fishing vessel diesel at $3.22 per gallon and other marine diesel at $3.35 — an overall decrease of 20 cents per gallon, said Kava.
According to OPM there will also be a 20 cent decrease per gallon for the Ultra Low Sulfur Diesel (ULSD) which is used for the eleven generators at the American Samoa Power Authority’s temporary power generation system (TPGS) in Satala, and the ULSD road diesel used by Education Department school buses.
Kava explained that the drop in price is due to the drop in crude oil from about $137 a barrel in March to under $90 in June. Additionally, the price out of the refinery continues to drop. He said there is supply out there, but there is a decline in global demand.
Moreover, “India and China are showing significant economic slow down — thus a drop in demand,” Kava said.
Meanwhile tomorrow marks a local and federal holiday for the 4th of July — the 236th birthday of the United States of America. Celebrations across the U.S. includes parades, fireworks and other festivities.
Here at home, residents will mark this holiday with families and friends getting together and the Department of Public Safety will have an increased presence island-wide to ensure a safe holiday for everyone.
The 4th of July is also a good time for sales, and if you are looking for bargains, Ace American Industries begins their Blowout sale tomorrow, which runs through July 7th.
Local and federal government offices will be closed, along with the majority of businesses, including the two banks, as well as the US Post Office.
Samoa News will also not publish on July 4th, but will publish on July 5th, Thursday. We wish American Samoa a happy and safe celebration.