17th October, 2017 The Ministry of Commerce, Consumer, Trade, Innovation & Labour wishes to advise that the Tonga Competent Authority (TCA) has approved the new petroleum prices for October – November 2017 to be effective from Monday, 16th October 2017.
Crude oil prices have continued to climb reaching USD59/bbl on 25th September, the highest price for two years. Indicators are showing stronger economic growth with higher petroleum demand supporting crude oil prices. Dated Brent averaged USD 56.05/bbl for September which was USD 4.41/bbl higher than August.
Regional diesel and kerosene prices rose slightly more than crude oil with good demand related to strong economic growth. The opportunity to export west (to Europe) is sustaining margins following the closure of the post hurricane export opportunity to the United States of America.
Comparing the September month average prices with August, crude oil (Date Brent) was up USD 4.41/bbl (8.5%). Petrol was up by USD 2.88/bbl (4.5%), jet was up by USD 4.98/bbl (7.9%) and diesel was up USD 4.98/bbl (7.8%)
The freight rate has strengthened increasing the cost of shipping to Tonga (albeit from a fairly low level). The disruptions in the wake of Hurricane Harvey have tightened the shipping market with more ships allocated to longer voyages.
The Tongan Pa’anga has been steady therefore the increase in Singapore prices has flowed through local prices.
The petroleum prices for October – November increases with the wholesale price of petrol and kerosene by 6.26 seniti/litre and 9.78 seniti/litre respectively, while diesel recorded the largest increase of 9.85 seniti/litre. The retail price will be 253.13 seniti/ litre for petrol, 168.95 seniti/litre for Kerosene and 251.32 seniti/ litre for Diesel. All price changes include consumption tax.
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For further information please contact the Ministry of Commerce, Consumer, Trade, Innovation & Labour at telephone 23688