16th May, 2019 The Ministry of Trade and Economic Development wishes to advise that the Tonga Competent Authority (TCA) has approved the new petroleum prices for May-June 2019 to be effective from Thursday, 16th May 2019.
Crude oil prices rose to their highest this year as markets responded to the US announcement to eliminate all Iranian sanction waivers. Crude oil (Dated Brent) prices averaged USD 71.23/bbl in April, a USD 5.14/bbl increase compared to March 2019.
The loss of Iranian oil will exacerbate an already tight crude oil market along with OPEC/non-OPEC production cuts and geopolitical tensions in Venezuela. The US President has signalled that Saudi Arabia and other OPEC members will make up any supply deficits. However, whether crude oil prices will continue to rise will depend on the outcome of the OPEC/Non-OPECC Ministerial meeting scheduled on 26th June.
While crude oil prices rose, product prices were variable. Petrol prices continued to increase more than crude supported by refinery shutdowns in India and South Korea. Regional diesel prices rose although less than crude with increasing supply from China and Taiwan putting downward pressure on refining margins. Jet/kerosene prices moved similar to diesel with increased supply from China, further compounded by weaker demand in the region. Comparing the April 2019 month average price with March 2019:
- Crude oil (Brent) was up by USD 5.14/bbl (7.8%);
- Petrol was up by USD 6.33/bbl (8.5%);
- Jet was up by USD 2.75/bbl (3.4%); and
- Diesel was up by USD 2.27/bbl (2.8%).
The freight rate has strengthened while the Tongan Pa’anga has been steady resulting in the international price changes flowing through to higher retail prices for all products in Tonga.
Overall, all product prices will rise for the fourth straight month, particularly, petrol prices. Wholesale petrol, kerosene and diesel will increase by 11.61 seniti/litre, 5.51 seniti/litre and 4.71 seniti/litre respectively. The retail price in Tongatapu for Petroleum increase by 11.31 seniti/litre, Kerosene by 5.59 seniti/litre and Diesel by 4.71 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.
For further information, please contact the MTED, Price Control Unit, Ms ‘Ilaisaane Mila on (676) 7400105 ext 131 or email: ilaisaanem@mted.gov.to