Vital FSM Petroleum Corp. welcomed the signing of Public Law No. 24-65 by President Wesley W. Simina on June 2 according to a June 4 release.
Public Law No. 24-65 formalizes government support for up to US$5 million in loans for fuel price stabilization. A Government of Japan non-project grant provides approximately US$3.1 million. Together, these measures provide approximately US$8 million in additional stabilization capacity, strengthening the existing fuel price stabilization mechanism within the FSMPC pricing policy framework and improving the nation's ability to manage future fuel market disruptions, Vital said.
The new law represents an important step in strengthening the Federated States of Micronesia's ability to respond to sudden increases in international fuel prices and protect the nation from severe fuel market disruptions, Vital said. Fuel price stability is not only an energy issue; it is directly linked to the affordability of electricity, transportation, food distribution, and essential government services throughout the FSM.
Historically, Vital FSMPC has relied on its own financial reserves and working capital to absorb international fuel price shocks and reduce the impact on domestic consumers. In recent months, the corporation has absorbed millions of dollars in additional fuel supply costs that would otherwise have required larger and more immediate fuel price increases.
In simple terms, when international prices rise sharply, those higher costs need to be absorbed by the supplier or passed on directly to consumers through price increases. PL24-65 and the Japan grant materially increase the capacity of the fuel stabilization mechanism to absorb these exceptional cost increases and is intended to help reduce the size and frequency of any future fuel price increases while also maintaining reliable fuel supplies across the nation.
A partial fuel price adjustment was implemented in May. Without the strengthened stabilization mechanism, current market conditions would likely have required further fuel price increases during June and potentially July. Even following the May adjustment, fuel prices within the FSM remain among the most competitive in the North Pacific region. In practical terms, the strengthened stabilization mechanism helps protect households, businesses, and essential services from the full and immediate impact of international fuel price shocks, Vital said.
Jared Morris, CEO of FSM Petroleum Corp., which also does business as Vital Energy, said that as a result of Typhoon Sinlaku’s damage to Weno and the outer islands, of the Chuuk population “30% completely lost housing and another 20% had some damage.” The hotels held up reasonably well, he said.
“People, premises, products and processes were all impacted,” Morris said, in an April 18 meeting with the Journal. Morris and Maderson Ramon, general manager of Vital, received the award for their presence in the Bank of Guam ASC Trust List of the Top Companies in Micronesia in 2025, which appeared in Guam Business Magazine.
As of April 18, according to Vital, its aviation refueling system was operational since April 16, with priority given to scheduled United Airlines Flights. The Tonoas Power Plant, which provides power for Tonoas Island, Fefan, Uman, Etten, and Weno – had been inspected and was ready to generate power once the Chuuk Public Utility Corp. completed its safety inspections and confirmed the integrity of the distribution network.
Services available included retail deliveries to service stations and diesel deliveries to the CPUC. Retail fuel delivery began on April 17, Morris said. Post-typhoon, he said, “I think demand will go up … things like C130s flying in, and boats … everybody wants to do something and it puts the pressure on the energy supply.”
Vital had sufficient reserves, he said, despite deliveries once a month.
Vital’s fuel is supplied by Exxon Mobil, “So we’ve been fortunate on the supply side,” he said. “That’s one of the main reasons we’ve selected Exxon Mobil. They have line of sight all the way to the oil fields – reliable and great service.”
Morris said, the last time the cost of living in the Federated States of Micronesia increased dramatically was at the onset of the Ukraine war. “Inflation was rampant at 200% for the cost of a tray of eggs, and the cost of fish.” He said the group had been able to cap the cost of fuel due to its social obligations and operations model at around $5.60, $5.80.
The MV Seawatch was ready to support restoration and recovery operations in Chuuk. Much aid went to Chuuk from neighboring islands and non-profits such as the Ayuda Foundation.
The Northern Mariana Islands has received a variety of grants, according to the office of Kimberlyn King-Hinds, the NMI delegate to Congress.
The National Fish and Wildlife Foundation, a non-profit 501(c)(3) organization chartered by Congress, has announced a pending grant of $1.16 million to the University of Guam to survey and document marine biodiversity in Rota and Guam.
This project will update the previous 2003 survey and improve detection, identification, and assessment of non-indigenous species while expanding understanding of the area’s rich biodiversity. The project will conduct underwater field surveys, document species occurrence and distribution, and collect specimens for submission to global DNA reference libraries to provide resource managers with a critical tool for rapid response and early intervention of invasive marine species outbreaks.
The Commonwealth Healthcare Corp. has been awarded a $1 million Bureau of Justice Assistance Harold Rogers Prescription Drug Monitoring Program grant to implement the CNMI Prescription Drug Monitoring Program.
The NMI Department of Public Safety has been awarded $400,000 through the Department of Justice's SMART fiscal 2025 Support for Adam Walsh Act Implementation Grant Program. This grant will strengthen the NMI's Sex Offender Registry Unit across Saipan, Tinian, and Rota by supporting law enforcement training, compliance monitoring, community notification efforts, and public safety initiatives. mbj
