26 May 2010

American Samoan residents assured petrol products will not be increased

11:14 am on 26 May 2010

Residents of American Samoa have been assured the prices petroleum products will not be increased despite the massive oil spill from an oil rig owned by BP oil off the United States Gulf coast.

Sione Kava from the American Samoa Office of Petroleum Management was responding to enquiries from residents who were worried BP Southwest Pacific's operations in Pago Pago, may raise prices to cover the losses from the oil spill.

Mr Kava says crude oil prices are not set by oil companies, but by oil producing countries, specifically the Organization for the Petroleum Exporting Countries, which includes the United States.

He says when petroleum prices go up or down in the territory, it's based on its base price, which in turn in is based on the price of crude oil purchased from the refinery.

He adds that any major incident or event, such as an oil spill or international conflict, will affect the market worldwide and in return will affect crude oil prices.