The price of petrol and diesel for Tonga increases for April-May 2015 by a few seniti, while the kerosene price drops starting 16 April.

The new retail prices for petrol, diesel and kerosene, including consumption tax are:

Petrol $2.31 seniti per litre, a 6.6 seniti increase

Diesel $2.30 seniti per litre, 0.06 seniti increase

Kerosene $1.69 seniti per litre, -4.49 reduction

The Tonga Competent Authority said the petroleum prices for these two months were mainly determined by the movement of FOB prices in the Singapore market. This was based on March 2015 average prices of the daily published Means of Platt's Singapore (MOPS) benchmark prices.

Comparing March's average prices with February, crude oil (Dated Brent) was down by USD2.21/bbl (3.8%). Kerosene decreased by USD3.24/bbl while petrol prices increased by USD3.28/bbl and diesel prices decreased slightly by USD0.39/bbl.

“The freight rate increased and the Tongan pa’anga has continued to depreciate, falling to a monthly average of US 49.04 cents which has increased costs for local consumers."

On the outlook crude oil prices will remain volatile with strong build up of stocks expected to continue in the first half of this year although the geopolitical risk remains, which could put upward pressure on prices.