PALIKIR, Pohnpei – March 20, 2026 – On Wednesday, March 18, 2026, His Excellency Wesley W. Simina, President of the Federated States of Micronesia (FSM), concluded a meeting with Vital Energy – the FSM Petroleum Corporation (FSMPC) – board and management to discuss and receive an update on supply chain and energy price risks given the rapid developments amid heightened tensions in the Middle East and reported disruptions around the Strait of Hormuz, a critical corridor for global oil and LNG shipments.

Supply is Secure:

The Government wishes to assure state governments, businesses, and the public that fuel supply in the country remains secure at this early stage, and there are currently no issues with the supply of petroleum products to the FSM.

Though there are a number of high-profile media releases at international and regional levels reporting oil shortages, and some petroleum suppliers invoking ‘force majeure’ clauses of supply agreements, the Government has been reassured in its meeting with Vital FSM Petroleum Corporation (Vital FSMPC) that the strategic oil reserves across the FSM continue to be maintained, catering for short-term disruptions, and that the future pipeline of supply cargoes under contracted fuel supply arrangements with reputable supplier(s) remains on schedule.

Reports from around the region indicate escalating oil prices and oil shortages, and government entities, businesses, and the public are urged not to engage in panic buying or hoarding. There is sufficient product to meet requirements based on past purchasing practices and demand.

Vital FSM Petroleum Corporation (Vital FSMPC) continues to monitor this closely and will advise if there is a change in the situation.

Domestic Price Escalation Risks:

The Government notes with concern the velocity of price escalation being experienced regionally, noting that international crude oil prices have increased by 70% and that there have been four (4) price increases in the last two (2) weeks in Guam, with average retail gasoline prices now exceeding $6–$8 per gallon.

Discussions with Vital FSM Petroleum Corporation (Vital FSMPC) confirmed that new cargoes of fuel have already been impacted by cost increases, and that due to the velocity and magnitude of this risk, it is inevitable that domestic fuel prices will be affected in the coming months if prices are sustained at these levels for many weeks.

Consumers should be aware that FSM operates under a price monitoring arrangement and a pricing policy framework model implemented and maintained by the FSMPC. The Government wishes to assure state governments, businesses, and the public that any domestic price movements over the coming months will only reflect the actual increased costs of procurement and transportation of products to the FSM.

His Excellency, President Wesley W. Simina, stated, “The foremost responsibilities are to safeguard supply, uphold stability, and maintain transparency with the people.”

The FSMPC team informed the President that effective controls are in place and that preparations have been made for the weeks ahead. The public is encouraged to remain calm but prudent as near-term risks are managed collectively. The team further reassured that, in the longer run, efforts will be accelerated to transition to cleaner, more resilient energy to reduce exposure to external shocks.

The Office of the President will continue working with Vital FSMPC and relevant agencies to monitor international markets and domestic impacts. Periodic public updates will be issued as the situation evolves.

###