Petroleum prices rise [1]
Monday, August 16, 2021 - 16:59. Updated on Tuesday, August 17, 2021 - 09:38.
The price for petrol, kerosene, and diesel will increase starting on 18 August, as approved by the Tonga Competent Authority.
On Tongatapu, the retail price for petrol, kerosene, and diesel will increase by 12.03, 5.66, and 5.27 seniti/litre respectively.
Consumers on Tongatapu will pay 300.95 seniti/litre for petrol, 200.02 seniti/litre for kerosene, and 269.79 seniti/litre for diesel.
The retail price for Vava’u is 306.15, 205.22, and 291.09 seniti/litre for petrol, kerosene and diesel respectively.
The authority stated that petroleum prices started to rise this year despite COVID-19, mainly due to the vaccine rollout, economic recovery particularly in developed countries, and OPEC+ output policy.
To ease rising prices, the Tongan Government provided a 5-seniti subsidy for the May-June pricing. It also reduced excise duty by 10 seniti for the July-August pricing, costing the government an estimated over $4 million annually.
Meanwhile, crude prices fell in early August, and if it continues to hold at this level or continue to fall, a drop in retail prices is expected next month in Tonga.