Petrol Prices Up – Russian-Ukraine conflict to impact future prices

APIA, SAMOA – 01 MARCH 2022: A new month and March has ushered in increased retail prices for petroleum products.

The Minister of Finance, Mulipola Ale Molioo announced last night that petrol prices go up by 17.91 sene from $2.93 to $3.11 a litre.

Diesel is up by 22.42 sene from $2.84 to $3.07 a litre. Kerosene increases by 20.67 sene from $2.46 to $3.66 a litre.

The wholesale prices for March are based on January MOPS – International Product Prices which increased by US$10-12 a barrel. Freight rates were stable while the US$ weakened marginally against the Tala.

The Minister said that demand for petroleum products is growing faster than production especially from the OPEC countries which includes Russia as the world transitions from the worst of the pandemic. The Russian military build-up on the Ukraine border raised concerns about the stability of the supply chain which in turn is reflected in higher prices as buyers lock in future supplies.

Comparing current petroleum prices with other neighbouring countries such as Australia, Fiji and New Zealand is reflected in the following table.

Comparative petroleum prices with other Pacific countries.