Fuel Overview

Palau, as with many North Pacific Island countries, relies on fuel imports for the supply of general and specialist fuels, mostly from Guam and Singapore. The majority of fuel consumed in Palau is for power generation on the main islands of Babeldoab and Koror, and the outer islands to a lesser extent.

There are two main fuel suppliers in Palau, both of which are private. Blue Bay Petroleum owns and operates the former Mobil network and holdings, and Isla Petroleum and Energy holdings (IT&E) operate the shell license for Palau, Saipan, and Guam. There are a number of retail service stations operating independently that are supplied by Blue Bay, as well as other Shell company-owned retail stations.

Blue Bay Petroleum Inc. (BBPI) is a subsidiary of Tan Holdings Corporation, a diverse holding company in the Western Pacific. Tan Holdings is involved in a wide range of industries vital to island economies of the Western-Central Pacific. Blue Bay supplies UPL 87 and 91, Diesel Jet A1, and is the agent for mobile oils and lubricants.

Isla Petroleum and Energy Holdings, LLC (IP&E), is an additional retail and commercial supplier of petroleum products on Guam, Saipan and the Republic of Palau, with wholesale operations in the Federated States of Micronesia and the Republic of the Marshalls.

Both these companies provide fuel for power generation, which is supplied on a competitive tender basis, and also provide fuel for the retail market. IP&E supply to its own (Shell-branded) service stations, while Blue Bay supplies, but does not operate retail fuel stations, (although they are Blue Bay branded).

Supplies of Avgas are private, and Pacific Missionary Aviation (PMA) is the main importer. PMA holds Avgas supplies at the airport in an isotainer/transtainer. This stock is for OMA use only.

For more information on government and fuel provider contact details, please see the following links: 4.1 Government Contact List and 4.7 Fuel Providers Contact List

Information may also be found at: http://www.mytravelcost.com/petrol-prices/ which is updated monthly.

Blue Bay Fuel Depot Malakal IP&E Fuel Depot Malakal

Blue Bay Petroleum Tanker at the airport PMA Isotainers for Avgas at Palau International airport

Fuel Bunker for emergency services at the airport Fuel Bunker (Jet A1) at the airport

Fuel Pricing

Fuel in Palau is unregulated and prices are loosely based on the local market, as well as on the Ex-Singapore bunker price.

Fuel Prices per Litre as of: 02-04-2018 (*local currency and* *USD - $)*
Petrol	$ 1.14/Lt
Diesel	$ 1.25/Lt
Paraffin	N/A
Jet A-1	$0.90

Seasonal Variations

There are no major seasonal variations, and scheduled supplies arrive every 28 days. Serious storm surges or broader climate changes can impact ocean travel and may cause delays. This however has historically been infrequent and only lasts a few days if it does occur.

Seasonal Variations
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?)	Yes, priorities are given to the electricity supply on Koror and Babeldoab, through the Republic of Palau Public Utilities (RPPU).
Is there a rationing system?	No
Is fuel to lower income / vulnerable groups subsidized?	No
Can the local industry expand fuel supply to meet humanitarian needs?	Yes
Is it possible for a humanitarian organization to directly contract a reputable supplier/distributor to provide its fuel needs?	Yes, but fuel suppliers, especially in aviation, use fuel brokers for the supply and payment for fuel.

Fuel Transportation

Fuel is transported around the country by road on the main islands of Babeldoab and Koror and by sea to the other islands. Fuel is transported by 20,000 lt tankers to all states and islands connected to the mainland of Babeldoab.

The Islands of Peleliu, Angaur, and Kayangel are supplied by the Peleliu state vessel Orngatanf II. The RoRo vessel is a double-bottomed RoRo barge with a 12,000 lt fuel storage capacity. It is the main vessel used for the transport of bulk fuel to the outer islands and supplies public utilities power generation.

Retail fuel stations do not exist on outer islands and fuel is bought over by way of 200 lt and 20 lt containers.

Standards, Quality, and Testing

Fuel quality is not regulated nationally, but is self-regulated by the petroleum companies (Blue Bay) to ensure quality is provided by the supplier. Fuel is tested at the point of arrival at the wharf. Samples are sent to Guam for testing.

Industry Control Measures Blue Bay
Do tanks have adequate protection against water mixing with the fuel?	Yes. Water is not used to push fuel. Drain points for condensation are emptied every day for sediment and moisture collection.
Are there filters in the system which monitor where fuel is loaded into aircraft?	Filters are inline, between the tanks and the pumps, to the tanker filling points. There are also a further 3 inline filters between the tanks and the aircraft refuelling point at Palau International airport.
Is there an adequate epoxy coating of tanks on trucks?	Tanks are inspected by a specialist every 10 years. Anecdotal evidence from managers suggests that only minimum coating provisions are undertaken.
Is there a presence of suitable firefighting equipment?	Equipment is not extensive at the bunker site. Fire support at the airport is by way of ARFF.

Standards Authority
Is there a national or regional standards authority?	No, international standards are used.
If yes, please identify the appropriate national and/or regional authority.	N/A
If yes, are the standards adequate/properly enforced?	Unknown

Testing Laboratories
Are there national testing laboratories?	No

Fuel Quality Testing Laboratory
Company	SGS
Name
Address	810 West Marine Corps Drive, Hagatna, Guam, 96910, Guam
Telephone and Fax	671-588-2923
Contact
Standards Used

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and the WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: The 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.