LPG gas prices have jumped significantly starting today rising by 48 seniti per kilogram for Tongatapu and 42 seniti per kilogram for Vava’u compared to last month’s increase of 7 seniti per kilogram.

The Tonga Competent Authority (TCA) said the huge increase is due to Saudi CP Butane prices continuing to increase since falling to a decade low in August last year. The new prices are also influenced by the Northern Hemisphere winter heating demand as well as the Asia Pacific demand for petrochemical feedstock.

In addition, the TCA said bunker prices and freight prices have also increased.

The retail price for LPG on Tongatapu is $4.10 per kilogram and $4.09 per kilogram on Vava’u and will be effective until June 2017. Vava’u has a smaller increase than Tongatapu because it received a larger parcel when prices were still low.

Petrol, diesel and kerosene

Petrol and kerosene prices decreased slightly by 0.88 seniti/litre and 0.13 seniti/litre respectively.  Diesel however increased slightly by 0.54 seniti/litre.

The Retail Price for petrol is 256.25seniti/litre, diesel is 251.06seniti/litre whereas kerosene is 173.27seniti/litre and will remain effective until the next review in April 2017. All price changes include consumption tax.

Crude oil prices remained steady increasing by USD 0.49/bbl or 0.9% during February and OPEC members and non-members continue to track well with agreed production cuts.

Although petrol increased slightly by USD 0.79/bbl and diesel by USD 1.62/bbl, the slight decrease in local prices is due to the Tongan Pa’anga strengthening against the US dollar, up just over 1%. The freight rate also reduced with the impact of lower bunker prices.

The TCA said the stronger Tongan Pa’anga was “enough to offset most of the slight increases in international prices. In addition lower freight costs have helped reduce costs”.