31 Aug 2004

Petrol prices in the Marshall Islands hit record high

1:54 pm on 31 August 2004

A second five-cent price hike by Mobil Oil Micronesia in a month has seen petrol prices in the Marshall Islands rise to their highest levels ever in the country.

People are now paying $2.93 per US gallon, which in metric terms, is just under four litres.

Mobil, which is based in Guam, is now charging the three gas stations in Majuro $2.51 per gallon but local taxes and markups by local dealers brings the price up to the record high.

The Marshall Islands government has criticized Mobil for unfair markup of the wholesale price to the dealers, saying that it is selling fuel locally for about 80 percent profit over its importation costs.

The president of Mobil Oil Micronesia, Jeff Borja, met with government officials in Majuro last month and is expected to hold another meeting with them in mid-September to continue discussions about the price issue.