The prices for diesel and kerosene will decrease significantly except for petrol which continues to increase, starting from Monday, 19 December.

Approved by the Tonga Competent Authority (TCA) the new retail petroleum prices are for December 2022 to January 2023.

• Petrol increases to $3.52 per litre from the current price of $3.49
• Kerosene decreases to $3.08 per litre from the current price of $3.17
• Diesel decreases to $4.03 per litre from the current price of $4.25

The TCA stated today that the mid-December 2022 price change is based on the November 2022 average of published daily Mean of Platts Singapore (MOPS) benchmark prices for product prices and freight cost, along with the month’s exchange rate.

While, crude oil prices decreased on a month average basis, product prices were variable. Asia Pacific refining margins for petrol increased, with continuing strong buying in the region from Vietnam and India.

Diesel prices fell more than crude, with a fresh covid lockdown in China reducing domestic demand and the continuing surge in Chinese exports cutting into regional refining margins.

Similarly, jet/kerosene prices fell mainly due to large reduction in crude oil prices. However, regional winter demand for kerosene as a heating fuel was supporting refining margins.

Maritime freight rates have increased marginally (up by 5.6%), partially offsetting a decrease observed last month.

In addition, the ongoing Russia-Ukraine conflict (companies avoiding using Russian owned tankers) is supporting much higher maritime freight rates than usual.

"The Tongan Pa’anga has strengthened offsetting some of the increases and adding to the price drops."