Gov't provides subsidy for hike in petroleum prices [1]
Wednesday, June 29, 2022 - 16:08
The Tongan Government will subsidize the petrol price increase, starting on 1 July to ease its impact on households.The Prime Minister's Office said historical new highs of local fuel prices, are due to the continuous global surge in energy prices.
High prices have gone over $4 pa’anga per litre for petrol and diesel, while there have been increases in gas per kilogram and diesel power.
They stated that extent and duration of the global petroleum price crisis is further hiked by the uncertainty of the political tensions in Ukraine, the resultant economic sanctions, and its extensions.
Government announced it will subsidize for three-months the increase in prices by:
- paying 20 seniti per litre for each of the petroleum products (petrol, diesel and kerosene)
- paying 15 seniti per kwh, from the 18 seniti increase in electricity tariff. The new 15 seniti subsidy per kwh is in addition to the existing 6.7 seniti per kwh subsidy, plus the 11 seniti per kwh lifeline subsidy for eligible consumers whose consumption is below 150 kwh per month;
The continuity of the subsidies will be reviewed before the end of September depending on the extent of further increases and duration.
Acting Prime Minister and Minister Responsible for Energy Hon. Poasi Tei said this high increase is more pronounced and severely felt by households, at the lower end of the income distribution, and in the outer islands.
“The approved subsidies are crucial to alleviate the impact on the most vulnerable households. The subsidy will supplement the Government social protection assistance to the elderly, special needs, and through constituencies throughout the country.”
At the same time, Government urged the public to please take measures to minimize the negative impacts of the petrol and electricity tariff increases including consideration of cost savings measures until the price returns to normal.