March 2025 Petroleum Prices Increased in Tonga Due to Global Market Trends

Petroleum prices in Tongatapu surged in March due to higher international costs and a weakened Pa’anga. Wholesale petrol, kerosene, and diesel prices increased significantly, leading to adjusted retail prices. The Ministry of Trade and Economic Development assures that the price hikes adhere to TCA guidelines and reflect current market conditions.

In March, petrol, kerosene, and diesel prices increased significantly due to higher international rates, reduced freight charges, and a weakened Pa’anga. Consequently, retail prices in Tongatapu have also risen, reflecting these changes in the wholesale market. Specifically, wholesale prices increased by 6.12, 12.81, and 14.33 seniti per litre for petrol, kerosene, and diesel, respectively.

The retail prices in Tongatapu have been adjusted to $3.30 per litre for petrol, $2.55 per litre for kerosene, and $3.40 per litre for diesel, up from $3.25, $2.45, and $3.25, respectively. The Ministry of Trade and Economic Development (MTED) confirmed that the Tonga Competent Authority (TCA) approved these new rates, which took effect on March 3.

These price adjustments are aligned with the January 2025 average of published daily Mean of Platts Singapore (MOPS) benchmark prices for fuel and freight, along with the exchange rate from that month. The TCA based their recommendations on previous Annual and Triennial Review decisions made on August 1 and October 10, 2024, respectively, incorporating supplier submissions from the October monthly evaluations.

The price of crude oil fluctuated, peaking over US$80 per barrel in mid-January and settling at US$77 by month’s end, with an average Brent crude price of US$78.35 that reflects a 7.3% rise from December. In the Asia-Pacific region, demands for petrol and jet cargoes have surged, mainly due to potential tariffs on Canadian and Mexican crude oil. However, an oversupply of diesel due to decreased exports from the Middle East has created downward pressure on local refiner margins.

MTED highlighted that the escalating crude oil prices are the main driver for the increase of all product prices observed in January, compounded by about a one percent drop in the Tongan pa’anga against the US dollar. It is important to note that the consumption tax is incorporated in all the price changes announced this month.

In summary, March’s petroleum price increase in Tongatapu is a direct result of elevated global crude oil prices, adjusting freight rates, and currency valuation impacts. The Ministry of Trade and Economic Development stated that these alterations reflect market trends, consumption tax inclusions, and require adherence to approved frameworks by the Tonga Competent Authority. Consumers should expect these changes in their fuel expenses going forward.

Original Source: matangitonga.to