PALIKIR, Pohnpei – FSM – 2 June 2026 – His Excellency President Wesley W. Simina today signed Public Law No. 24-65, authorizing a sovereign guarantee in support of a US$5 million financing facility for Vital FSM Petroleum Corporation (FSMPC) and strengthening the Federated States of Micronesia’s fuel price stabilization mechanism.
The legislation was submitted by the Simina-Palik Administration during the most recent regular session of Congress as part of the National Government’s response to global fuel market disruptions and ongoing efforts to strengthen fuel price stability and energy security.
The enactment of Public Law No. 24-65 represents an important milestone in the nation’s response to unprecedented volatility in international fuel markets and demonstrates the collective commitment of the Executive Branch, Congress, development partners, and FSMPC to safeguarding national energy security and economic stability.
The occasion marked the first presidential signing ceremony of its kind held to recognize legislation supporting national fuel price stabilization, underscoring the importance of the measure and the partnership behind its enactment. Present for the signing were Speaker of Congress the Honorable Esmond B. Moses, Chief Executive Officer of Vital FSM Petroleum Corporation Jared C. Moris, members of FSMPC’s Board of Directors, and key staff from both FSMPC and the National Government.
The sovereign guarantee authorized under the legislation will support financing arrangements established to strengthen FSMPC’s capacity to manage extraordinary fuel market disruptions while maintaining affordable and reliable fuel supply throughout the nation.
The fuel price stabilization mechanism is further supported by a non-project fund grant of approximately US$3.1 million from the Government of Japan, reflecting the longstanding strong and enduring cooperative between the Federated States of Micronesia and Japan.
“Today marks an important example of effective national cooperation in the interests of the people of the Federated States of Micronesia. This legislation demonstrates the ability of Government, Congress, our development partners, and our state-owned enterprises to work together quickly and decisively in response to emerging national challenges.”
“The global fuel market disruptions experienced over recent months have highlighted the vulnerability of small island nations to external economic shocks. Through collaboration, foresight, and responsible action, we have strengthened our ability to protect our communities, support our economy, and maintain the continuity of essential services.”
President Simina expressed his appreciation to the Congress of the Federated States of Micronesia for its support and timely consideration of the legislation.
“I thank the Speaker for his leadership, and all Members of Congress for their commitment to advancing this important national initiative. The passage of this legislation reflects a shared understanding of the importance of energy security to the people and economy of our nation.”
The President also extended the gratitude of the Government and people of the FSM to the Government and people of Japan for their generous support.
“Japan has long been one of the Federated States of Micronesia’s closest development partners. This contribution further strengthens the bonds of friendship between our nations and demonstrates a shared commitment to resilience, stability, and sustainable development.”
The legislation follows a series of engagements between the Office of the President and FSMPC to address the challenges posed by global fuel market disruptions.
President Simina further acknowledged the Board of Directors, management, and staff of Vital FSM Petroleum Corporation for their professionalism and collaboration in developing the stabilization mechanism and supporting its implementation.
Reliable fuel supply remains essential to electricity generation, transportation, healthcare services, telecommunications, food security, public safety, and economic activity throughout the FSM. The stabilization mechanism forms part of the Government’s broader efforts to strengthen national resilience against external economic shocks while ensuring continued access to essential energy supplies.
“This outcome demonstrates the value of partnership, coordination, and proactive leadership. It reflects what can be achieved when national institutions and international partners work together with a common purpose to serve the people of the Federated States of Micronesia” said Jared C. Moris.
The Simina-Palik Administration remains committed to working closely with Congress, State Governments, development partners, and FSMPC to strengthen the nation’s long-term energy security, economic resilience, and sustainable development.
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