Overview:
Palau’s Senate is pushing for urgent action as fuel prices climb, approving a resolution that calls on President Surangel Whipps Jr. to review procurement systems, explore oil reserves and strengthen long-term fuel resilience.
Resolution pushes Whipps to review procurement, explore regional fuel deals and boost price transparency
By: Eoghan Olkeriil Ngirudelsang
NGERULMUD, Palau— “We currently have large fuel tanks — perhaps it’s time to explore the possibility of having oil reserves,” President Surangel Whipps Jr. said, as the Senate moved to press for a comprehensive response to rising fuel costs.
The Senate, during its 6th Special Session Thursday, passed Joint Resolution 12-18 urging Whipps to review Palau’s fuel procurement system and supply chain structure and develop strategies to manage escalating prices and strengthen long-term fuel resiliency.
The resolution calls on the president to explore regional cooperative fuel purchasing arrangements, assess the feasibility of establishing strategic oil reserves in Palau, and form a working group to study fuel pricing transparency and recommend policies to mitigate price volatility and supply disruptions.
Citing Palau’s heavy reliance on fossil fuels, lawmakers outlined seven areas for a comprehensive review: evaluating current procurement practices, including supply chains, contracts and import structures; exploring competitive procurement options that could allow multiple suppliers; examining alternative long-term supply arrangements and cooperative mechanisms; consulting neighboring Pacific governments and utilities on a regional fuel purchasing framework; coordinating with the Palau Public Utilities Corporation on procurement reforms tied to electricity generation and energy policy; assessing the feasibility of establishing strategic oil reserves; and strengthening consumer protections through greater transparency in domestic fuel pricing and monitoring of potential excessive retail price increases.
The measure also calls for the creation of a working group composed of two representatives from each house of the Palau National Congress, one from the Office of the President and two from relevant executive agencies. The group is tasked with consulting stakeholders and technical experts and producing a comprehensive study and policy review, including findings and recommendations, within six to nine months.
The resolution comes as Palau faces mounting public concern over rising fuel prices, driven in part by global increases linked to the Middle East conflict.
Speaking at a press conference last week, Whipps encouraged residents to reduce fuel consumption, pointing to the public bus system as an alternative. He said that, over the long term, reducing dependence on fossil fuels is key to limiting exposure to global price volatility.
Whipps noted that solar battery storage systems funded by Australia are expected to arrive soon, which would allow Palau to expand its use of solar energy while reducing reliance on imported fuel. He also raised the possibility of containerized nuclear power sources, which he said could provide clean energy for up to 20 years, though such a move would require a constitutional referendum because nuclear energy is currently prohibited under the nation’s constitution.
He also signaled openness to policy measures under consideration, including the possibility of establishing oil reserves and supporting a Senate bill to restore power utility subsidies that were removed from the fiscal 2026 national budget.
Lawmakers say the resolution reflects growing urgency to cushion households and businesses from volatile fuel costs while building a more resilient and transparent energy system for the future.
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