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The Historical Impact of Global Oil Price Movements on Domestic Gasoline Prices in the North Pacific

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The Historical Impact of Global Oil Price Movements on Domestic Gasoline Prices in the North Pacific

This technical note examines how global oil-price movements have historically affected domestic gasoline prices in Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia. The analysis finds that changes in global prices pass through most quickly and strongly in Palau, while the effects are more gradual in RMI and FSM. Using historical data and alternative global oil-price scenarios, the paper estimates the potential path of domestic fuel inflation through early 2027 and considers the implications for broader consumer-price inflation, including the role of taxes, distribution margins, shipping costs, and refined-fuel prices.

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https://pitiviti.org/storage/dm/2026/06/palau-policy-note-gas-prices-20260603020955313.pdf

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The Historical Impact of Global Oil Price Movements on Domestic Gasoline Prices in the North Pacific

document detail posted at of The Historical Impact of Global Oil Price Movements on Domestic Gasoline Prices in the North PacificPosted Jun 03, 2026

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This technical note examines how global oil-price movements have historically affected domestic gasoline prices in Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia. The analysis finds that changes in global prices pass through most quickly and strongly in Palau, while the effects are more gradual in RMI and FSM. Using historical data and alternative global oil-price scenarios, the paper estimates the potential path of domestic fuel inflation through early 2027 and considers the implications for broader consumer-price inflation, including the role of taxes, distribution margins, shipping costs, and refined-fuel prices.

Link to This Page:

https://pubs.pitiviti.org/oil-prices

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