Tuesday, November 18, 2008

Fuel Prices UP-date

In response to my recent comment on Lil' Hammerhead post on the slight decrease in fuel price here in the CNMI as compared to the rest of the world, I made the attempt to speak to Commerce Secretary Michael Ada.

Issues to be considerate of- Fact or Fiction?

1. Mobil and Shell no longer order fuel together, each company order their fuel on their own and is responsible for overall landed cost to the CNMI.

2. Landed cost in the CNMI before fuel price decrease does not make any significant change due to shipment cost of fuel on old supply, therefore it is passed on to consumers.

3. Adjustments are made at least a week after the price decreases to make up profit margin off the fuel arriving earlier than when it was decreased. (my comment, not Mr. Ada) Is that so?

Basically, we are still at the mercy of tariff imposed on the fuel arriving Saipan, does this not constitute the government interjection? Did we have to see Blockbuster, Carmen Safeway, Ming Palace Restaurant and who knows who else closes their doors on cost of utilities because of the high fuel prices, oops sorry, in better terms "surcharge"? What is the rate pegged now at CUC and at our pumps? I don't recall and it is more sad when I feel it being a norm to me... Oh no!

Mr. Michael Ada shared his comments and I posted them as I heard, well paraphrased to be exact. However, I do admire Mr. Ada as he is a person that is looking beyond his time. I know some would disagree, but I do see him differently, a local boy with an MBA striving to effect change that is needed for the whole CNMI business and community alike.

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Just a simple man who loves and cares for his family. Personal views with life in general, business and challenges in the Commonwealth of the Northern Mariana Islands. Sharing what we have through publications BISON Relations push out for everyone to keep abreast of what's happening in our beloved island home, Saipan.