The Ministry of Commerce, Tourism & Labour wishes to advise that the Tonga Competent Authority (TCA) has approved the new petroleum prices for March – April 2016 to be effective from Wednesday 16th March 2016.
All petroleum consumers are notified that wholesale/retail prices for Petrol continues to decrease while wholesale/retail prices for Diesel and Kerosene have slightly increased for the month of March – April 2016. The retail price for Kerosene will lead the increase by 5.62 seniti/litre to a new price of 125.81 seniti/litre. The retail price for Diesel will also increase by 3.87 seniti/litre to a new price of 189.81 seniti/litre. Finally, the retail price for Petrol again decreases by 10.82 seniti/litre to a new price of 198.50 seniti/litre. Please note that all changes include consumption tax.
The petroleum prices for March – April 2016 is mainly determined by the movement of FOB prices in the Singapore market based on February 2016 average prices of the daily published Means of Platt’s Singapore (MOPS) benchmarck prices.
Comparing the February month average prices with January, crude oil (Dated Brent) is up by USD 1.79/bbl (5.8%). Kerosene and diesel prices rose a little more than crude, up by USD 3.11/bbl and USD 2.31/bbl respectively. As noted above, petrol refining margins fell sharply resulting in lower regional prices (drop of USD 5.69/bbl) despite the increase in crude prices. The freight rate has reduced with the impact of lower bunker prices. The Tongan Pa’anga has been steady. Overall this month, product prices movements are mixed. Wholesale kerosene and diesel will increase by 5.25 seniti/litre and 3.61 seniti/litre respectively. Petrol prices will reduce by 10.12 seniti/litre. All price changes include consumption tax.
On the outlook, crude prices have risen in the first week of March with news of more tensions in Iraq and Nigeria, and falling US shale oil production. Despite this, the market is well supplied and high inventories are keeping downward pressure on prices. Product prices are expected to follow crude, although prices may increase ahead of crude with declining US stocks providing support following the recent decline in refining margins. This may result in a rebound in petrol prices next month.
Ends.
For further information please contact the Ministry of Commerce, Tourism & Labour at telephone 23688.