A slight drop in new petroleum prices for petrol, kerosene, and diesel, has been approved by the Tonga Competent Authority effective from today, 16 April.

Wholesale petrol, kerosene, and diesel has decreased by 0.09 seniti/litre, 5.31 seniti/litre and 2.98 seniti/litre respectively.

The retail price of petrol, kerosene and diesel has also decreased by 0.09 seniti/litre, 5.68 seniti/litre and 2.98 seniti/litre respectively, with all price changes including consumption tax. 

Crude oil prices were firm in the first half of March but went up in the second half of the month.

Compared to February, average prices for March were:

• Crude oil (Dated Brent) was up USD 0.71/bbl (1.1%); 
• Petrol was marginal up by USD 0.09/bbl (0.1%); 
• Jet was down by USD 1.03/bbl (-1.3%); and 
• Diesel was also marginal up USD 0.26/bbl (0.3%) 

Due to weaker refining margins, which is the difference in value between the products refineries produce and the value of crude oil used to produce them, product prices did not rise as much. Kerosene (jet fuel) prices fell as the refining margin fell more than the crude price rise. This was due to the shift from winter heating demand to upcoming summer in the Northern Hemisphere.

The freight rate also strengthened but the Tongan Pa’anga has been steady. While it would be normal for petrol and diesel prices to increase, and for kerosene to drop in price, the decrease in price across all products is due to the removal of the price recovery component this month.