In March 2025, petroleum prices in Tonga increased due to raised international prices, lower freight rates, and a weaker Pa’anga. The retail prices for petrol, kerosene, and diesel rose to $3.30, $2.55, and $3.40 per litre, respectively. The price changes were approved by the TCA and are influenced by recent market trends and currency fluctuations.
In March 2025, petroleum prices in Tonga have risen due to higher international prices, reduced freight rates, and a depreciating Pa’anga. Consequently, retail prices for petrol, kerosene, and diesel in Tongatapu have seen an increase, aligning with the rise in wholesale rates.
The wholesale prices have escalated to 6.12 seniti per litre for petrol, 12.81 seniti for kerosene, and 14.33 seniti for diesel. This translates to retail price increases from $3.25 to $3.30 per litre for petrol, from $2.45 to $2.55 per litre for kerosene, and from $3.25 to $3.40 per litre for diesel.
The Ministry of Trade and Economic Development (MTED) noted that the Tonga Competent Authority (TCA) sanctioned these new prices effective as of 3 March 2025. The price adjustments were calculated based on the January 2025 average of the Mean of Platts Singapore (MOPS) benchmark prices and freight, in conjunction with that month’s exchange rate.
The adjustments in wholesale prices derive from decisions made in the 2024 Annual and Triennial Review meetings by the TCA, where updated recommendations were established based on suppliers’ submissions. Additionally, crude oil prices fluctuated throughout January, reaching over $80 per barrel mid-month, before settling at around $77 by month’s end, marking a 7.3% increase from December.
The Asia-Pacific market anticipates surged demand for petrol and jet cargoes owing to potential tariffs on Canadian and Mexican crude. This has inadvertently boosted Singapore’s refiner margins, despite unfavorable conditions for diesel exports from the Middle East to Europe that have influenced product prices in the region. MTED attributed the increasing product costs primarily to the climbing crude oil prices, compounded by a continued depreciation of the Pa’anga against the US dollar, estimated at about one percent.
It is pertinent to note that the consumption tax is integrated into all recent price changes for petroleum products.
In conclusion, the spike in Tongan petroleum prices for March 2025 is primarily a result of heightened international crude prices, a weaker local currency, and calculated adjustments based on market conditions. The retail price increases for petrol, kerosene, and diesel are reflective of these trends, poised to impact consumers directly. The fluctuations in the Asia-Pacific crude market further emphasize the interconnected nature of global oil prices and their ramifications locally.
Original Source: matangitonga.to
