Wholesale prices for petroleum in Tongatapu increased on 18 April to $3.4616 seniti per litre while the retail price remained the same as March, capped at $3.60 pa'anga per litre. Higher prices are effective in other island groups ranging up to $4.45 per litre in Niuafo‘ou.

These are the maximum prices allowable for petroleum motor spirit set by the Tonga Competent Authority (TCA).

The Ministry of Trade and Economic Development who announced the new prices, stated there was a new pricing method approved by TCA. “As for retail price, [the] new pricing method approved by TCA members last month has resulted in the retail prices for Tongatapu remaining unchanged for all petroleum products. All price changes include consumption tax.”

While the wholesale price for petrol in Tongatapu increased by just under one seniti  (0.90 seniti) per litre for April, this followed an 11.43 seniti rise per litre in March, after a 12.12 seniti per litre rise in February.

At the same time, the retail price caps increased by 12 seniti/litre increase in February and 10 seniti/litre in March.

However, in April-May, the new pricing means that petrol retailers must absorb the latest increase in wholesale price and may not pass it on to their customers.

Fuel Retailers

Local petrol station operators are concerned that price control for April-May has reduced their profitability.

Paula Vaitohi of Vaitohi Enterprises, told Matangi Tonga the situation would definitely affect their profit making.

Asco Motors CEO Tonga Po‘oi said that while this new pricing would benefit their customers, they would struggle to make a profit. "If we analyze our profit by the end of the month, it will be a low-margin."

He said low-margins would make it more difficult for petrol retailers to cover the costs of maintaining their fuel pumps to a high standard.

New Petroleum Prices for April – May 2024

The Ministry of Trade and Economic Development reported that the April-May petroleum prices were mainly determined by the movement of FOB prices in the Singapore market, based on March 2024 average prices of the daily published Mean of Platts Singapore (MOPS) benchmark prices.

"Crude oil prices experienced a notable increase driven by promising economic indicators from China and persistent geopolitical tensions in the Middle East. The average price for Brent crude in March 2024 stood at US$84.67/bbl, reflecting a 3.6% month-on-month escalation."

The Ministry stated that combining the impact of international price change, reduction in freight cost, and weaker Tongan pa’anga, the overall wholesale petrol price was increased by 0.90 seniti/litre, while kerosene and diesel prices decreased by 3.02 seniti/litre and 6.42 seniti/litre respectively.

They also stated the wholesale prices were calculated using the Tonga Fuel price Template approved and issued during the 2023 Annual Price Review.

New LPG ad-hoc prices

The Ministry of Trade and Economic Development also stated that the Tonga Competent Authority (TCA) had a meeting held on 15 April, to approve the new Ad-hoc prices for LPG to be effective from 18 April.

"The new LPG ad-hoc prices were implemented to reflect TCA decision on the Annual LPG Review Report 2023. The ad-hoc LPG price review has incorporated the impact of the Annual Review 2023 on the LPG price template."

The new LPG retail prices for Tongatapu and Vava‘u will increase by TOP 0.05/KG.

All prices include consumption tax.