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This section outlines official Press and Media Statements issued by the Ministry of Information and Communications in addition to Press Releases from the Prime Minister's Office and other Government Ministries and Departments.

New Petroleum Prices for July - August 2018

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16th July 2018 The Ministry of Commerce, Consumer, Trade, Innovation & Labour wishes to advise that the Tonga Competent Authority (TCA) has approved the new petroleum prices for July - August 2018 to be effective from Monday, 16th July 2018.

Crude prices were mixed last month even though subject to upwards pressure because of lower supply from some countries and geopolitical tensions as US officials worked to reduce Iran’s oil exports to zero by November. Higher crude oil prices were more than offset by other supply, particularly from US and OPEC members. Overall crude oil prices were lower compared to May by USD2.61/bbl (June average USD74.33/bbl).

OPEC’s June meeting agreed to continue current targets, but with more flexibility for countries (like Saudi Arabia) to produce more to offset other lost production. Therefore, overall production should increase. However, there is uncertainty in the market by a potential escalation of the US/China trade war, with crude oil prices continuing to trade in a tight band around US$72-75/bbl. While US crude production continues at record output levels there are signs that infrastructure constraints are impacting starting to limit production in some regions.

Product prices generally fell more than crude due to plentiful supply which is reducing refining margins.  Comparing the June 2018 month average prices with May:

 

  • Crude oil (Dated Brent) was down by USD 2.61/bbl (3.4%);
  • Petrol was down by USD 3.79/bbl (4.4%);
  • Jet was down by USD 3.01/bbl (3.4%); and
  • Diesel was down by USD 2.64/bbl (2.9%).

 

The freight rate has also reduced and the Tongan Pa'anga has been steady, resulting in a decrease in product prices locally.

Overall this month, all product prices will decrease. Wholesale petrol, kerosene and diesel will decrease by 6.81 seniti/litre, 5.49 seniti/litre and 4.87 seniti/litre respectively. Retail prices for petrol, kerosene and diesel for Tongatapu ONLY are 283.63seniti/litre, 209.74seniti/litre and 289.41seniti/litre respectively. For prices to outer islands, please contact our offices for details. All price changes include consumption tax.

For further information please contact the Ministry of Commerce, Consumer, Trade, Innovation & Labour at telephone 7400105 or 8713712.

 

Ministry of Commerce, Consumer, Trade, Innovation & Labour 13th July 2018

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