25 Sep 2007

Two Samoas in joint fuel bulk buying arrangement

8:22 pm on 25 September 2007

American Samoa is set to benefit financially from a joint fuel bulk buying arrangement with Samoa.

The American Samoa and Samoa governments have appointed representatives to work on such an agreement and to share information on developing renewable energy alternatives.

Our correspondent in American Samoa says the territory must abide by strict regulations for fuel imports set by the U.S. Environment Protection Agency.

Fili Sagapolutele says as a result, fuel hikes in the territory are much higher than in countries like Samoa.

"One of the hurdles faced by American Samoa is the insurance that is applied on the transportation of fuel to the territory. For example the insurance company will impose certain hikes on the rates of insurance to ensure that the tankers arrive safely in their final destination. But one other way of working [this], is this is to try to buy a large bulk of it."

Fili Sagapolutele.