18th January, 2019 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 2019 to be effective today Wednesday, 16th January 2019.
“Overall there is large drop in all product prices this month, a great news to all Consumers,” said CEO, Edgar Cocker. The Wholesale price for petrol, kerosene and diesel will decrease by 14.26 seniti/litre, 19.14 seniti/litre and 20.58 seniti/litre respectively. Retail prices for petrol, kerosene and diesel for Tongatapu ONLY are 242.78seniti/litre, 181.91seniti/litre and 260.41seniti/litre respectively.
This large drop is due to the Crude oil (Brent) prices that averaged USD57.30/bbl in December, a USD7.01/bbl drop compared to November. Despite current global geopolitical issues (Iranian sanctions, Venezuela production falls), prices tumbled last month as a result of economic uncertainty and continues trade war between US and its allies against China and a weaker demand outlook for 2019. Higher oil prices in the last few months, along with the impacts of trade barriers and protectionism, are beginning to impact global growth which has fed through to lower petroleum demand.
While monthly average crude oil prices dropped versus the previous month, all product prices fell more than crude. The downward pressure on product prices is in response to a combination of fresh supply into an already saturated market and China’s recent announcement increasing export quotas for its refineries.
In addition to this, the freight rate has strengthened partially offsetting the product price drop. The Tongan Pa’anga has been steady resulting in the international prices change flowing through to lower retail prices for all products in Tonga.
The Ministry will conduct the next petroleum price review on the 18th Febraury, 2019.
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 MCCTIL, Price Control Unit, Ms ‘Ilaisaane Mila on (676) 7400105 ext 131 or email: ilaisaanem@mcctil.gov.to