13th April, 2018 The Ministry of Commerce, Consumer, Trade, Innovation & Labour wishes to advise that the Tonga Competent Authority (TCA) has approved the new petroleum prices for April – May 2018 to be effective from Monday, 16th April 2018.
Crude oil prices were firm in the first half of March as OPEC production cuts were offset by rising US shale oil production. However, prices rose in the second half of the month in response to crude and product stock drawdowns in the US. This reflected a strong global economy driving higher demand for petroleum products. The US is playing an increasing role as a major exporter (including to Asia). Overall, the monthly average crude prices were slightly higher than February – Dated Brent average US 65.90/bbl about USD0.71/bbl higher than previous month.
Product prices generally followed crude higher, although weaker refining margins mean they did not rise as much. For kerosene (jet fuel), prices actually fell as the refining margin fell more than the crude price rise. This was due to the shift from winter heating demand to upcoming summer in the Northern Hemisphere. Comparing the March 2018 month average prices with February:
- Crude oil (Dated Brent) was up USD 0.71/bbl (1.1%);
- Petrol was marginal up by USD 0.09/bbl (0.1%);
- Jet was down by USD 1.03/bbl (-1.3%); and
- Diesel was also marginal up USD 0.26/bbl (0.3%)
The freight rate has strengthened although the Tongan Pa’anga has been steady, resulting in pass through of all international cost into prices locally in Tonga.
While we would normally expect the above change in March MOPS to result in a small rise for petrol and diesel and a drop in kerosene prices although this month all product prices will decrease as the price recovery component has been removed (the recovery from not shifting prices in February). Wholesale petrol, kerosene and diesel will decrease by 0.09 seniti/litre, 5.31 seniti/litre and 2.98 seniti/litre respectively. For retail prices of petrol, kerosene and diesel will decrease by 0.09 seniti/litre, 5.68 seniti/litre and 2.98 seniti/litre respectively. All price changes include consumption tax.
ENDS
For further information please contact the Ministry of Commerce, Consumer, Trade, Innovation & Labour at telephone 7400108/8713712.