Consumers will enjoy cheaper petrol, kerosene and diesel as prices dropped today, 16 January after being approved by the Tonga Competent Authority (TCA).

The wholesale price for petrol, kerosene, and diesel has decreased by 14.26 seniti/litre, 19.14 seniti/litre and 20.58 seniti/litre respectively.

In Tongatapu, retail prices for petrol, kerosene, and diesel are 242.78 seniti/litre, 181.91 seniti/litre, and 260.41 seniti/litre respectively. In Vava’u, retail prices for petrol, kerosene, and diesel are 248.35 seniti/litre, 187.48 seniti/litre, 265.61 seniti/litre respectively.

The fall in prices is due to the crude oil (Brent) prices averaging USD57.30/bbl in December, which dropped by USD7.01/bbl compared to November. In addition fresh supply into an already saturated market, as well as China’s recent announcement increasing export quotas for its refineries, and economic uncertainty and continued trade war between the US and its allies against China and a weaker demand outlook for 2019 also contributed to the fall in prices.

However, the freight rate has strengthened partially offsetting the fall in product price.

The Tongan Pa’anga has been steady resulting in international price changes flowing through to lower retail prices for all products in Tonga.