16th June, 2016 The Ministry of Commerce & Labour wishes to advise that the Tonga Competent Authority (TCA) has approved the LPG prices for June – September 2016 to be effective from Thursday 16th June 2016.
All LPG consumers are notified that wholesale/retail prices for LPG will decrease for both Tongatapu and Vava’u for the second quarter June – September 2016. The retail price for LPG in Tongatapu will decrease by -0.18 seniti/kg to a new price of $3.58 per kg. The retail price for Vava’u will also decrease by -0.29 seniti/kg to a new price of $3.65 per kg. Wholesale prices for Tongatapu decreased to a new price of 3,100.42/tonne ($3.10/kg) as compared to 3,283.21/tonne ($3.28/kg) of the first quarter. Vava’u wholesale prices also decreased to 3,175.51/tonne ($3.18/kg) from 3,463.46/tonne ($3.46/kg) of the first quarter. Please note that all changes include consumption tax.
The LPG prices for the 2016 second quarter June – September price change is based on the published Saudi Contract Price (Saudi CP) for the LPG cargoes discharged in March, April and May 2016. Tongatapu received one cargo each in March and April and two cargoes were discharged in May. Vava’u received one cargo each for March and May 2016. As a result, Tongatapu and Vava’u each received in this period 4 cargoes and two cargoes respectively.
Saudi CP Butane prices rebounded from the February 2016 low, although at a much slower pace than expected. Plentiful supply and a mild Northern Hemisphere winter kept downward pressure on prices. Overall, the butane price averaged USD 350/tonne in the second quarter, about 11 percent lower than the first quarter.
On the outlook, LPG prices for the third quarter are expected to be flat until seasonal demand pulls prices higher in the fourth quarter. The Northern Hemisphere LPG demand has diminished with the onset of summer (no LPG heating demand) and we expect third quarter prices to remain relatively steady. As a result, the Saudi’s have set the June Butane price at USD 365/tonne, a drop of USD 15/tonne from May prices.
ENDS
For further information please contact the Ministry of Commerce & Labour at telephone 23688.
Issued from the Ministry of Commerce & Labour