16th March, 2017 The Ministry of Commerce, Consumer, Trade, Innovation & Labour wishes to advise that the Tonga Competent Authority (TCA) has approved the new LPG prices for March – June 2017 to be effective from Thursday 16th March 2017.
There is a huge rise in the LPG price for Tongatapu and Vava’u for March – June 2017 compared to the LPG prices approved by the TCA in February – March 2017. The retail price for Tongatapu increased by 48 seniti per kilogram. The retail price for Vava’u also increased by 42 seniti per kilogram. The wholesale price for Tongatapu increased by $485.08 per tonne; equivalent to 48 seniti per kilogram and wholesale price for Vava’u increased by $428.55 per tonne and equivalent of 43 seniti per kilogram.
The reason for this huge increase in price is, Saudi CP Butane prices continued to increase in this quarter after falling to a decade low in August 2016 (USD290/tonne). LPG prices are supported by Northern Hemisphere winter heating demand and strong Asia Pacific demand for petrochemical feedstock. Overall, the butane price averages USD 505/tonne in the first quarter, about 34% higher than the fourth quarter last year.
As bunker prices have moved above the USD100/tonne price band that would normally indicate a freight price change. The tongatapu freight was increased by 7.4% and Vava’u freight increased by 5%.
Overall this quarter, there is a significant increase in the LPG Price for both Tongatapu and Vava’u primarily due to the sharp increase in Saudi CP prices along with the adjustment of freight cost in line with increasing bunker prices. Vava’u price increases smaller than Tongatapu due to receiving a larger parcel when prices were still low (December 2016) Tongatapu Vava’u.
ENDS
For further information please contact the Ministry of Commerce, Consumer, Trade, Innovation & Labour at telephone 23688 ext 130