An increase in petroleum prices for October – November will be effective on Wednesday, 18 October, as approved by the Tonga Competent Authority, when wholesale petrol, kerosene and diesel will all increase.

In Tongatapu, the retail prices for petrol will increase by 10 seniti/litre to $3.79 (equivalent to 2.71% increase), kerosene will increase by 18 seniti/litre to $3.18 (equivalent to 6% increase) and diesel by 17 seniti/litre to $4.03 (equivalent to 4.68% increase).

Wholesale prices for petrol will increase by 10.39 seniti/litre, kerosene by 17.43 seniti/litre and diesel by 17.15 seniti/litre respectively. Wholesale prices were calculated using the Tonga Fuel price template issued during the 2003 Annual Price Review. All changes include consumption tax.

The Ministry of Trade and Economic Development reported that this increase in petroleum prices for October - November was mainly determined by the freight (FOB) prices in the Singapore market.

“Crude oil prices continues to climb as global supplies remain constricted due to OPEC+ restrictions, particularly after the announcement that Saudi Arabia and Russia would continue their additional voluntary cuts through to the end of this year.

“Maritime freight rates continued to increase in response to increasing activity in the Asia-Pacific region suported by economic growth, particularly in China and India.

“The Tongan Pa’anga has weakened down by 0.6%, further increasing landed costs. These factors combined have resulted in a significant increase in all product prices,” the TCA stated today.