In Tonga, petrol, diesel and kerosene prices have reached their highest prices to date with new rates effective from Monday, 20 June for a month.

Petrol, diesel and kerosene prices peak with retail price of $4.28 per litre for petrol an increase of 45 seniti from the May prices. 

Kerosene and diesel increased by 25 seniti to $3.35 per litre and 18 seniti to $4.36 per litre respectively. 

Tonga Competent Authority in approving the new prices said  the continuous increase in crude oil prices and large increase in refining margins have led to sharp increase in product prices. 

They said the ongoing Russia-Ukraine conflict continues to affect the shipping industry and the maritime freight rates. On the local scene, while the local population is still in recovery from the aftermath HTHH and the covid-19, the continuous hikes in the prices of petroleum products is affecting consumers and local businesses. 

In addition, the Minister for Finance Hon. Tatafu Moeaki said government is finalizing response measures to reduce the full pass-on of international petroleum prices to the public and electricity tariff, including safeguards for vulnerable households to be effective from 1 July 2022. 

The surge in petroleum prices will increase the electricity tariff from 1July on top of already increasing food prices affecting everyone including businesses. These imported price inflation represents a terms of trade loss for Tonga as the country relies heavily on these imports,” said Hon. Moeaki.

The Tonga Competent Authority advised consumers to take greater responsibility in managing consumption and to find means to minimise use of petrol, and electricity. Car-pooling, turning of all switches and use of the local bus transport are ways to reduce consumption.

LPG price increases

Meanwhile, the price of LPG, also increased by TOP 0.51/kg from 20 June. The TCA reports the increase this quarter is due to the higher Suadi CP price, supported by the Russia-Ukraine conflict and the impact of OPEC+ production discipline (holding production targets. There was also an increase with freight cost which contributed to the increase in price.