Petroleum and LP gas prices have increased starting today, 16 December, as approved by the Tonga Competent Authority.

The wholesale price for petrol, kerosene, and diesel has increased by 0.23, 6.07, and 5.27 seniti/litre respectively.

The retail price for petrol, kerosene, and diesel on Tongatapu is 242.28, 141.48, and 241.06 seniti/litre respectively.

Meanwhile, LPG prices increased by 0.16 seniti/kg in Tongatapu and 0.14 seniti/kg in Vava’u.

The new LPG retail price for Tongatapu is 3.87 seniti/kg, Vava’u 3.97 seniti/kg, Ha’apai 5.05 seniti/kg, ‘Eua 4.91 seniti/kg and Niuatoputapu 6.21 seniti/kg.

The increase is due to crude oil prices increasing in November, reaching a high of 48 USD/bbl, the highest level seen since the crude crash in March due to CoViD-19.  Saudi CP prices have risen with increasing crude oil prices.

Despite increased CoViD-19 lockdown measures in parts of Europe, and Libya production returning to add to supply, these downward pressures were offset by a number of events including:

• News of a viable CoViD-19 vaccine; 
• Falling US stock level; 
• Joe Biden’s win in the American election; and 
• Strong demand recovery in China and India, with China seeing domestic flights carrying ~50 million domestic passengers (only 12% down from last year). 

The freight rate has decreased by 6.7% while the Tongan pa’anga has remained stable.

Those factors combined helped to offset some of the regional price increase, resulting in an increase in local retail prices for all products.