Fuel Overview
Fuel supplies throughout FSM are provided by Vital Group through FSM Petroleum Company (FSMPC) a state owned private company. FSMPC provide Bulk Storage and distribution throughout the 4 state capitals and a small number of outer islands.
The FSMPC is currently the largest supplier of energy lifeline products and services in the Federated States of Micronesia and Nauru The product mix is diesel 53% Gasoline 35% Kerosene /Jet Ai 10% 2% lubricants with a turnover of approximately 300,000 barrels per year ( source: Vital CEO)
FSMPC owns, operates and leases a significant number of assets and infrastructure across Micronesia, and have an ongoing comprehensive Asset Rehabilitation Program across their various operating sites. Vital specialises in the management of fuel and aviation facilities, and improving them to international standards.
Bulk fuel supplies come directly from Guam and Singapore and are shipped directly into the 4 main sea ports Pohnpei, Chuuk, Yap and Kosrae, by tanker.
Petrol (Mogas), Diesel and Jet A1 are the only fuels supplied in bulk by FSMPC to the islands. Diesel is also used in the production of electricity through generators thus creating the single biggest customer for the fuel throughout the country. The transport sector remains the largest consumer.
Petrol (Mogas) is primarily used for the retail market however Diesel (APO) is in largest demand.
Contingency stocks as indicated by Vital group CEO are generally 60 days average consumption.
Stock is delivered monthly to Pohnpei and Yap, bi-monthly to Chuuk and every 3 months to Koserae.
Restocking time from supplier is approx.14 days if surge stocks are required.
Each state capital has a bulk storage facility.
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FSM PC Depot Pohnpei |
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FSM PC Depot Chuuk |
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FSM PC Depot Yap |
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FSM PC Depot Kosrae |
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For more information on government and fuel provider contact details, please see the following links:
4.1 Micronesia Government Contact List
4.7 Micronesia Fuel Providers Contact List
Fuel Pricing
Fuel pricing is unregulated and large variations of 25-30% occur in the retail petrol market. As with other commodities State taxes apply.
However FSMPC operates a pricing policy framework adopted in 2009, which provides a framework to stabilise domestic prices against international volatility. Prices are benchmarked against island neighbours’ pump prices.
Wholesale prices are given to major customers which are generally limited to state governments for Electricity Supply and use in Public works and with commercial operators such as United Airlines. The wholesale prices at least for National users such as United Airlines are constant throughout FSM
Pricing of fuels increase the greater the distance from Guam. Fuel in Kosrae may be 20% higher than the other states.
Fuel is taxed across FSM
Existing capacity meets current needs and can be increased to meet a demand from the humanitarian community if required.
(local currency is USD - $) |
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Petrol |
$1.58 |
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Diesel |
$1.60 |
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Paraffin |
N/A |
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Jet A-1 |
$1.64 |
Seasonal Variations
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Seasonal Variations |
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Are there national priorities in the availability of fuel? (i.e. are there restrictions or priorities for the provision of fuel such as to the military?) |
Diesel generated electricity supply is the priority on each main island in each state |
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Is there a rationing system? |
No |
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Is fuel to lower income / vulnerable groups subsidized? |
No |
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Can the local industry expand fuel supply to meet humanitarian needs? |
Yes |
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Is it possible for a humanitarian organization to directly contract a reputable supplier / distributor to provide its fuel needs? |
Yes |
Fuel Transportation
FSM operates small fleets of several tankers in each of the states. 8-15,000Lt tankers for deliveries in each state from the bulk stores. Deliveries are to the retail stations operated by Vital and well as to government and commercial customers. The fleet is regularly serviced and updated.
Fleet
- 8 x Tanker Pohnpei
- 4 x Tanker Yap state
- 4 x Chuuk State
- 2 x Kosrae
Standards, Quality and Testing
FSM PC undertakes fuel sampling at the bulk delivery at discharge. Basic test are undertaken locally by FSMPC. There are however no comprehensive testing laboratories in FSM and fuel samples are sent to Guam for testing by SGS
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Industry Control Measures |
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Do tanks have adequate protection against water mixing with the fuel? |
Yes. Water is not used for bulk tank fuel discharge |
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Are there filters in the system which monitor where fuel is loaded into aircraft? |
No |
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Is there adequate epoxy coating of tanks on trucks? |
Yes |
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Is there a presence of suitable firefighting equipment? |
Yes |
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Standards Authority |
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Is there a national or regional standards authority? |
No Standards and quality tests are internal to FSMPC to international standards |
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If yes, please identify the appropriate national and/or regional authority. |
NA |
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If yes, are the standards adequate/properly enforced? |
Yes via SGS Guam |
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Testing Laboratories |
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Are there national testing laboratories? |
No. Fuel Testing is done on site at the Bulk depots. Flash point tests is undertaken at discharge from vessel. Sample tests are shipped to SGS in Guam for quality measurement |
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Fuel Quality Testing Laboratory |
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Company |
SGS |
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Name |
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Address |
810 West Marine Corps Drive, Hagatna, Guam, 96910, Guam |
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Telephone and Fax |
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Contact |
https://www.sgs-guam.com/en/contact |
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Standards Used |
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Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
