Government of the Federated States of Micronesia

Petroleum Corporation Reduces the Wholesale Price of Fuel

Kolonia, POHNPEI (FSM Petro Corp): November 6, 2008 - The Federated States of Micronesia Petroleum Corporation (FSMPC) has reduced the wholesale prices for kerosene, diesel and gasoline products across the three States effective today.

"This is our third price reduction since assuming operations in July and applies to commercial, retail and aviation customers. The reductions vary in each State but range between fifty cents and a dollar a gallon. We have passed on the benefits of a lower cost of inventory as a result of recent tanker deliveries" says Chairman Hawley.

International oil prices have decreased significantly over the last month, with West Texas Intermediate (WTI) crude trading between $60 and $70 per barrel on the New York Mercantile Exchange (NYMEX), however, domestic prices in the FSM have been slow to decrease.

"Because we buy products once a month we will experience a delay between what we see on today's trading and what we pay here. We hope that international prices stabilize at current levels to enable us to pass further cost savings to consumers" says Chairman Hawley.

The new prices effective today will have a positive effect on all aspects of the FSM economy and an immediate impact on the cost of doing business in the FSM. The general public can therefore expect these savings to be passed through to various local goods and services over coming months.

For more information contact the FSMPC on 691 320 6364.

For further information on this release, please contact:

FSM Office of the President
Public Information: Press, Radio, Video
P.O Box 34
Palikir Station, Pohnpei, FM 96941
Tel.: (691) 320-2548/2092
Fax.: (691) 320-4356