Petroleum prices continue to drop [1]
Monday, February 15, 2016 - 16:56. Updated on Tuesday, February 16, 2016 - 09:58.
The price of petrol, diesel and kerosene for Tonga will significantly decrease from this month to March starting on Tuesday, 16 February.
The new retail prices including consumption tax are:
Diesel185/94 seniti per litre, 19.15 seniti decrease
Kerosene 120.19 seniti per litre, 17.32 seniti decrease
Petrol 209.32 seniti per litre, 9.51 seniti litre decrease
The petroleum prices for February to March this year are mainly determined by the FOB prices movement in the Singapore market based on last month’s average prices of the daily published Means of Platt’s Singapore (MOPs) benchmark prices.
The Competent Authority said crude oil price fell below USD30/bbl. for the first time since 2004. This price pressure is likely to remain throughout this year as OPEC producers compete to maintain market share and there is plentiful supply.
Petrol prices fell less than crude due to strong demand particularly in the U.S and Asia Pacific which is capping the price drop.
The freight rate has reduced with the impact of lower bunker prices. However, the Tongan Pa’anga has weakened to US43 cents/pa’anga, which partially offset some of the decrease in international prices for local consumers.