The Tonga Competent Authority (TCA) has approved the new petroleum prices for December 2023 – January 2024, effective today, 18 December 2023. They said there is a large drop in product prices for diesel and kerosene, and a smaller drop for petrol.

The wholesale petrol, kerosene and diesel decreased by 7.60 seniti/litre and 19.43 seniti/litre and 26.77 seniti/litre respectively.

The Tongatapu retail prices for Petrol decreased by 7 seniti/litre to 3.51 (equivalent to 1.96% decrease).

Kerosene will decrease by 20 seniti/litre to $2.81(equivalent to 6.64% decrease) and Diesel will decrease by 27 seniti/litre to $3.61 (equivalent to 6.96% decrease). All changes include consumption tax.

They reported that the LPG prices reached its lowest point July 2023 and had since continued to recover in response to stronger demand and rising crude oil prices. “However, on a quarterly average, butane prices were around USD 141/tones high than third quarter (31 per cent increase).”

The December petroleum prices are mainly determined by the movement of FOB prices in the Singapore market based on November 2023 average prices of the daily published Mean of Platts Singapore (MOPS) benchmark prices. The wholesale prices have been calculated using the Tonga Fuel price Template approved and issued during the 2023 Annual Price Review.

Crude oil prices were just below US $85/bbl at the start of November and later fell to around US 80/bbl and continued and continued to fluctuate around that level for the rest of November. There was also little relief for refiners in the region, with Singapore product prices under pressure, particularly for diesel, as regional stocks were above average. However, some refinery disruptions provided temporary relief to refiners for petrol.

Maritime freight rates have decreased due to lower demand in key Asian economies, particularly China. The Tongan Pa’anga has been steady. These factors, combined, have resulted in a large drop in product prices for diesel and kerosene, and a smaller drop for petrol.