Petroleum prices in Tonga increased in March 2025 due to higher international prices, reduced freight rates, and a weakened Pa’anga. Wholesale prices rose for petrol (6.12 seniti), kerosene (12.81 seniti), and diesel (14.33 seniti), leading to higher retail prices in Tongatapu. The Ministry of Trade and Economic Development confirmed these adjustments, effective from March 3, 2025.
In March 2025, wholesale prices of petrol, kerosene, and diesel in Tonga have experienced notable increases due to several factors. The wholesale petrol price rose by 6.12 seniti per litre, while kerosene and diesel prices saw increases of 12.81 seniti and 14.33 seniti per litre, respectively. Consequently, retail prices for these fuels in Tongatapu also rose significantly.
Specifically, retail petrol prices increased from $3.25 per litre to $3.30 per litre, kerosene went up from $2.45 to $2.55 per litre, and diesel escalated from $3.25 to $3.40 per litre. The Ministry of Trade and Economic Development (MTED) indicated that these new prices were approved by the Tonga Competent Authority (TCA) and became effective on March 3, 2025.
The changes in fuel prices for March were determined based on the average published daily Mean of Platts Singapore (MOPS) benchmark prices as well as the prevailing exchange rate from January 2025. These wholesale prices reflect decisions made during the TCA’s meetings on August 1 and October 10, 2024, as well as updates from the Envisory price template incorporating suppliers’ submissions.
During January, crude oil prices surged beyond $80 per barrel, only to settle at approximately $77 per barrel by month’s end, averaging at $78.35 per barrel for January, representing a 7.3% increase from December. This increase in crude oil prices directly correlates with the rising costs of refined products in the Asia-Pacific region.
Additionally, the MTED noted that the Tongan pa’anga weakened against the US dollar by around one percent, further impacting the overall cost of petroleum products. It is essential to note that consumption tax is integrated into all price adjustments.
In summary, the increase in March petroleum prices in Tonga is attributed to rising international prices and a weakened currency. The approved changes have resulted in higher retail prices across key fuel products, reflecting broader trends seen in crude oil markets. Stakeholders should remain informed regarding price fluctuations in the global oil market that may continue to affect local pricing structures.
Original Source: matangitonga.to
