Petrol, diesel, and kerosene prices have fallen for the second month in a row after the new prices were approved by the Tonga Competent Authority (TCA) effective today, 16 April.

Wholesale petrol, kerosene and diesel prices have fallen by 12.49 seniti/litre, 11.62 seniti/litre and 11.92 seniti/litre respectively. All price changes include consumption tax. 

Consumers on Tongatapu will now pay 249.07 seniti/litre for petrol, 163.37 seniti/litre for kerosene and 252.09 seniti/litre for diesel.

The fall in prices is due to the value of crude oil reducing to USD 22.74/bbl by the end of March, the lowest in decades.

The spread of CoViD-19 globally has affected demand as countries closed borders and lockdowns enforced.

Jet demand crashed and petrol demand is down 20-40% across Europe and America. The lockdown in New Zealand is also seeing demand reduce by up to 80%.

The freight rate strengthened significantly offsetting some lower landed costs, reflecting the knock-on impact of large producers securing ships for temporary storage.

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