Gas prices drop for Tongatapu [1]
Thursday, September 18, 2014 - 21:24
While the wholesale and retail prices for Liquefied Petroleum Gas in Tongatapu dropped for September to December 2014, the prices have slightly increased in Vava'u from September 16.
The retail price for LP Gas in Tongatapu decreased by 0.07 seniti per kilogram from $4.52 to the new price of $4.45 per kilogram.
In Vava’u, the retail price increased by 0.03 seniti per kilogram from $4.53 to the new price $4.57 per kilogram. All price changes included the consumption tax.
The Competent Authority at the Ministry of Commerce, Tourism and Labour said the LP gas prices for September-December 2014 were based on the monthly Saudi Contract Price (Saudi CP) for the LP Gas cargo discharged in June-August 2014.
The average Dated Brent for the third quarter is USD106/bbl, which is 2 percent lower than the second quarter. This meant for Tongatapu the average price dropped by USD20/tonne compared to the second quarter.
At the same time, the Tongan pa’anga weakened offsetting most of the drop in the Saudi CP price and as a result the delivered price of LGP in Nuku’alofa is decreased only marginally (TOP 0.07 per kg).
The outlook points to a lower LPG price unless Saudi Arabia reduces its output clear the supply glut. The Saudi CP September butane price is set at USD$785/tonne which is USD15/tonne lower than August.
The Authority expected if the Tongan pa’anga is steady and the Saudi CP trend continued, that local Tongatapu prices should decrease further the next quarter.