18th March, 2019 The Ministry of Trade and Economic Development wishes to advise that the Tonga Competent Authority (TCA) has approved the new petroleum prices for March – April 2019 to be effective from Monday, 18th March 2019.
Crude oil (Dated Brent) prices averaged USD 64.17/bbl in February, a USD 3.96/bbl increase compared to January 2019. Prices spiked up in response to increasing demand from countries (particularly China) to stock up before their US Iranian sanction waivers expire in May combined with reduced OPEC led production cuts.
While monthly average crude oil prices increased versus the previous month, all product prices rose more than crude for the second straight month. In the case of diesel, the increase also reflects the change to Tonga receiving better quality product as the benchmarks for the new products are higher than the old qualities. Pacific Energy has now fully switched its physical product supply to 10ppm sulphur diesel and 95 RON petrol effective from February.
Singapore diesel prices continued to increase with strengthening demand for low sulphur diesel to cover regional refinery maintenance. While fresh demand for petrol from Indonesia supported petrol refining margins. However, outright jet/kerosene prices rose mainly due to higher crude oil prices. Comparing the February 2019 month average prices with January 2019:
- Crude oil (Brent) was up by USD 3.96/bbl (6.6%);
- Petrol was up by USD 5.21/bbl (8.5%);
- Jet was up by USD 6.04/bbl (8.4%); and
- Diesel was up by USD 8.08/bbl (11.4%).
The freight rate has slightly weakened while the Tongan Pa’anga has been steady resulting in the international prices change flowing through to higher retail prices for all products in Tonga.
Overall, there is a significant increase in all product prices this month. Wholesale petrol, kerosene and diesel will increase by 7.69 seniti/litre, 9.05 seniti/litre and 12.48 seniti/litre respectively. The retail price in Tongatapu for Petroleum increase by 7.69 seniti/litre, Kerosene by 9.68 seniti/litre and Diesel by 12.48 seniti/litre.
For full details on prices including outer islands, please contact our office or visit our facebook page: Consumer Affairs Tonga. All price changes include consumption tax.
ENDS
For further information please contact the MTED, Price Control Unit, Ms ‘Ilaisaane Mila on (676) 7400105 ext 131 or email: ilaisaanem@mcctil.gov.to.