Northern Mariana Islands struggles under fuel prices as government orders austerity measures

Record-high fuel prices are hitting the Northern Mariana Islands hard, straining households, businesses and government operations as the Iran war impacts regional supply chains.

In response, Governor David Apatang has directed all Executive Branch departments, offices, and agencies to implement revised austerity measures, beginning this week, while lawmakers push for federal measures to stabilise energy costs.

"In the Commonwealth of the Northern Mariana Islands, fuel prices are rising to unsustainable levels across all three inhabited islands. These increases are already feeding into higher electricity and utility costs across the Commonwealth," CNMI's delegate to the US Congress Kimberlyn King-Hinds said in a letter to US Energy Secretary Chris Wright.

King-Hinds emphasised structural challenges that make the islands vulnerable.

"The CNMI operates as a small, import-dependent market at the end of a long supply chain. Fuel is purchased in relatively small volumes and priced off external benchmarks, leaving the Commonwealth exposed to volatility and elevated costs."

She called on the Department of Energy to explore ways to "improve fuel supply stability and affordability in the Pacific territories".

Apatang said the revised schedule - with Mondays following payday designated as austerity days off - aims to support government workers while conserving resources.

"We are seeing rising fuel costs and a growing burden on households," he said.

Fuel prices in the CNMI are reaching unprecedented levels.

At a Mobil gas station on Saipan, extra unleaded is US$6.619 per gallon, supreme US$7.069, and diesel US$8.789.

Tinian Fuel Services lists unleaded at US$8.489 and diesel US$9.999. Rota's Sasanhaya Service Station reports US$7.74 regular, US$9.52 diesel, and US$8.79 for diesel, and US$10.37 for diesel, if using a credit card.

'Of course, it's painful' - business owner

Reflecting on the human impact, businessman Del Benson said, "When it comes to things like high gas prices, of course it's painful."

"But what we're really feeling are the consequences of decisions made by governments. And those consequences almost always fall hardest on ordinary people, no matter which side you're on.

"At the end of the day, the world feels like it's in a mess. And too often, it's the everyday people who pay the price."

The issue is not limited to the CNMI.

Guam Delegate James Moylan noted federal measures affecting the region.

"The president has issued a 60-day waiver of the Jones Act because of the conflict with Iran. Although this waiver comes during a time of crisis, I am hoping that this will be the foundation for finally opening the door and exploring a permanent solution for Guam."