Prices for petrol, diesel and kerosene in Tonga will increase starting on Friday, 16 October.

The new retail prices including consumption tax:

• Petrol 237.90 seniti per litre, 0.11 seniti increase
• Diesel 231.61 seniti per litre, 6.28 seniti increase
• Kerosene 162.97 seniti per litre, 8.19 seniti increase

The Competent Authority stated today the increase in the wholesale and retail prices is mainly determined by the movement of FOB prices in the Singapore market based on September 2015 average prices of the daily published Means of Platt’s Singapore (MOPS) benchmark prices.

Comparing September’s average prices with August, crude oil (Dated Brent) is up by USD0.96/bbl (2.1%). Kerosene and diesel prices both increased, while petrol prices were steady.

“The Tongan pa’anga has continued to depreciate, which has further increased landed costs (more than offset the small drop in petrol price),” they said in a statement. The depreciated was calculated for the period 1-30 September.

The Tongan pa’anga has fallen to a monthly average of US45.75 cents. The reduced exchange rate and higher freight has partially offset some of the decrease in international prices for local consumers.

On the outlook, with Iranian supply expected to increase next year and no signs of other OPEC members reducing their production, many international companies are now predicting crude oil prices will be lower for a longer period.

Demand for product, particularly petrol remains strong although not sufficient to increase prices.