The Ministry of Commerce, Tourism and Labour has announced large reductions in the price of fuel from Monday 17 November 2014, when prices for Petrol, Diesel and Kerosene will all be lowered.

The retail price of petrol will be lowered from $2.77 seniti per liter to $2.66 seniti per liter. The retail price for kerosene will be lowered from $2.26 seniti per liter to $2.14 seniti per liter. The retail price for diesel will be lowered from $2.80 seniti per liter to $2.68 seniti per liter.

The price reduction follows a global trend. The freight rate has also weakened adding to the overall price drop. However, the depreciating Tongan Pa'anga has offset some of this decrease.

Lower fuel prices could boost product demand going into 2015. This could result in prices rising again especially if the lower prices reduce the investment needed for new supplies of crude oil.