Fuel prices begin to creep back up
The new maximum allowable price (MAP) or wholesale price, for all petroleum products sold in American Samoa is seeing an increase — including for gasoline, according to data released by the Office of Petroleum Management, which releases the MAP on the 1st and 16th of every month.
Local motorists have enjoyed a drop in gas prices since the beginning of the year, but the new MP — effective Mar. 1 — shows an increase of just over 25 cents for gasoline, according to OPM data, which shows the new MAP for gasoline is a little over $2.56 per gallon.
The average price for gasoline as of early last week was around $2.72 per gallon, still under $3 per gallon.
The new MAP for kerosene and jet fuel show a 21 cents increase for both, while diesel fuel increase is just over 19 cents per gallon.
According to hawaiigasprices.com, the average price in Hawai’i is at $3.04 per gallon while the national average is still under $3, at $2.43. Other gas stations in the Aloha State were selling before the $3 mark, between $2.75-$2.78.
National news media have been reporting that gas prices across the country have continued to increase for five weeks in a row. CBS-News reports that the nation’s average reached the low of $2.03 per gallon on Jan. 26, after dropping for a record 123 straight days.
Back in the territory, Kava said, “the reason for the rise in crude prices is less clear, but some analysts suspect it could be a sign of oil prices achieving balance after the nearly 60 percent drop they experienced from June.”
Kava also explains that experts expected prices to rebound at about this time, when refineries start preparing to shift from winter to summer blends of fuel.
“Hot weather traps more air pollution, so federal law requires refineries to blend cleaner-burning – and more expensive – ingredients into their gasoline mixes than in winter,” he said.
“The transition begins around Groundhog Day, when many refineries deplete their stocks of winter fuel and go offline for maintenance, decreasing the supply of gasoline on the market, and therefore driving up prices,” he said.
As for future prices, Kava said the future may bring increases, “but I don't think we will see the $4 per gallon for a while yet." But then again, nothing is sure in this industry when it comes to prices, he added.
