The developed nations of the world are more concerned than ever with reducing their dependence on imported oil, lowering greenhouse gas emissions and developing alternative energy technologies. These issues are among the highest priorities for developing economies in the Pacific region as well. Samoa is a part of several regional initiatives that address petroleum and energy issues and is due to launch its own national energy policy in the coming months.
Petroleum prices in Samoa are low in comparison to other parts of the region because of the unique government/oil company partnership that administers its oil imports and pricing; however this structure can only keep prices as low as world market fluctuations in crude prices allow. Higher levels of consumption coupled with rising prices have pushed the value of oil imports to an all time high. Strong growth in Samoa’s transportation sector is a major reason that petroleum consumption has been increasing and will continue to do so. Efficiency and conservation strategies will help to ease the burden of rising oil prices in the short term and the development of alternative fuels such as coconut oil are expected to reduce petroleum dependence and its negative economic consequences in the long run.
Behavioral Economics | Oil, Gas, and Energy
Ikeda, Janis McDaid, "Fueling Samoa’s Growing Transport Sector: The Impact of Rising Oil Prices and Imports on a Pacific Island Economy" (2007). Independent Study Project (ISP) Collection. Paper 205.