14th June,2019 The Ministry of Trade and Economic Development wishes to advise that the Tonga Competent Authority (TCA) has approved the new petroleum prices for June – July 2019 to be effective from Monday, 17th June 2019.
Crude oil price movements were mixed last month with upward pressure in response to escalating tensions in the Middle East and downward pressure from lower economic forecasts due to the US-China tariff war. Despite the geopolitical tensions, the crude price was marginally down on a month average basis, particular due to a sharp price fall towards the end of May. Crude oil (Dated Brent) prices averaged USD 70.30/bbl in May, a USD 0.93/bbl decrease compared to April 2019.
While crude oil prices eased, product price movements were variable. Petrol prices fell more than crude as China increased its exports to the regional market cutting into the petrol refining margins. Diesel and kerosene prices fell with crude as their demand is expected to slow, particularly in the Asian region, with the start of the monsoon season. Comparing the May 2019 month average prices with April 2019:
- Crude oil (Brent) was down by USD 0.93/bbl (1.3%);
- Petrol was down by USD 4.43/bbl (5.5%);
- Jet was down by USD 1.04/bbl (1.3%); and
- Diesel was down by USD 0.57/bbl (0.7%).
The freight rate has reduced; however the weaker Tongan Pa’anga has offset some of the change in product prices within Tonga.
The overall impact on this month’s product prices are variable. Wholesale and retail price for petrol and kerosene will decrease by 6.47 seniti/litre and 0.64 seniti/litre while diesel prices are almost the same, up by 0.18 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.
ENDS
For further information please contact : the MTED, Price Control Unit, Ms ‘Ilaisaane Mila on (676) 7400105 ext 131 or email: ilaisaanem@mted.gov.to.