17th October 2019 The Ministry of Trade and Economic Development wishes to advise that the Tonga Competent Authority (TCA) has approved the new petroleum prices for October – November 2019 to be effective from Wednesday, 16th October 2019.
Crude oil prices briefly spiked by US 12/bbl following the 14th September drone attacks in Saudi Arabia. However, prices quickly fell and within a couple of days levelled to a USD 4/bbl increase. This was largely attributed to Saudi Arabia announcing a quick restart of half the facility and a return to pre-attack production levels by end September. Overall, the monthly average crude oil price increased to USD 62.29/bbl for crude oil (Dated Brent up by 2.79/bbl).
While the monthly average crude prices rose, product prices, particularly petrol, rose ahead of crude. Refining margins were boosted by Saudi Arabia reducing the throughput of its refineries following the attack in order to free up crude for export. Petrol margins increased more although this is from a low base earlier in the year when they were very poor. Comparing the September 2019 month’s average prices with August:
- Crude oil (Brent) was up by USD 2.79/bbl (4.7%);
- Petrol was up by USD 4.65/bbl (6.6%);
- Jet was up by USD 3.15/bbl (4.2%); and
- Diesel was up by USD 2.68/bbl (3.6%).
The freight rate has increased while the Tongan Pa’anga has been steady and as a result, higher Singapore product prices flowed through increasing pump prices in Tonga this month.
Overall, there is a large increase in product prices this month. Wholesale petrol, kerosene and diesel will increase by 8.92 seniti/litre, 6.37 seniti/litre, and 5.56 seniti/litre respectively. The retail price in Tongatapu for Petroleum increase by 8.92 seniti/litre, Kerosene by 6.48 seniti/litre and Diesel by 5.56 seniti/litre All price changes include consumption tax.
For full details on prices including outer islands, please contact the Ministry of Trade and Economic Development, Price Control Unit to Ms Ilaisaane Mila on (676) 7400105 ext 131, email ilaisaanem@mted.gov.to or visit our facebook page: Consumer Affairs Tonga.
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