16th January 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 January – February 2018 to be effective from Tuesday, 16th January 2018.
Wholesale petrol, diesel and kerosene will increase by 0.32 seniti/litre, 3.69 seniti/litre and 2.42 seniti/litre respectively. For retail prices of petrol, kerosene and diesel will increase 0.32seniti/litre, 3.69 seniti/litre and 2.59 seniti/litre respectively. All price changes include consumption tax.
Crude oil prices (Dated Brent) continued to increase in December breaking through USD65/bbl. However, part of this increase was due to a localized UK disruption (pipeline system shutdown) rather than market fundamentals. Dated Brent averaged USD 64.19/bbl or USD 1.58/bbl higher than November.
The decision to extend the OPEC and non-OPEC production cuts in the November meeting (these have been in place since the beginning of 2017) further supported crude oil prices. The tightened supply due to the production cuts was partially offset by exports from the US which continue to increase, which capped price increases.
Product prices, particularly diesel, rose even sharply than crude oil on stronger refining margins. Good economic growth is supporting diesel consumption in many countries and year-end travel requirements supported jet demand at the same as north Asian refineries are producing more kerosene for their domestic heating markets (winters heating fuel produced instead of jet fuel). The colder northern hemisphere winter is supporting demand for higher fuel use.
By contrast the colder weather reduces demand for petrol, and refining margins for this product have reduced, offsetting most of the increase from higher crude prices.
Comparing the December month average prices with November, Crude oil (Date Brent) was up USD 1.58/bbl (2.5%). Petrol was up by USD 0.18/bbl (0.2%), Jet was up by USD 1.42/bbl (1.9%) and Diesel was up USD 2.16/bbl (3.0%).
The freight rate has weakened slightly, down by 1% compared to previous month. The Tongan pa’anga was steady and as a result the small increase in the international prices has flowed through locally in Tonga.
For further information please contact the Ministry of Commerce, Consumer, Trade, Innovation & Labour at telephone 23688
Ministry of Commerce, Consumer, Trade, Innovation & Labour 15th January 2018
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