Petroleum prices in Tonga rose in March 2025 due to higher international prices, reduced freight rates, and a weaker Pa’anga. Wholesale prices for petrol, kerosene, and diesel increased, leading to higher retail prices in Tongatapu. The price adjustments were approved by the TCA and are reflective of global market changes.
In March, the prices of petroleum products in Tonga experienced an increase, attributed to higher international prices, decreased freight rates, and a weaker Pa’anga. The wholesale prices of petrol, kerosene, and diesel rose by 6.12, 12.81, and 14.33 seniti per litre, respectively. Consequently, retail prices in Tongatapu for these products also saw an increment.
The retail prices now reflect new rates: petrol increased from $3.25 to $3.30 per litre, kerosene from $2.45 to $2.55 per litre, and diesel from $3.25 to $3.40 per litre. These changes were approved by the Tonga Competent Authority (TCA) and became effective on March 3, 2025.
The adjustments to the prices are based on the January 2025 average of the daily Mean of Platts Singapore (MOPS) benchmark prices for petroleum products and freight, as well as the exchange rate during that month. The wholesale prices were calculated in accordance with decisions made in the 2024 Annual and Triennial Review by the TCA.
Notably, crude oil prices exceeded US$80 per barrel mid-January, ultimately stabilizing at US$77 per barrel by the end of the month. This led to an average Brent crude price of US$78.35 per barrel, marking a 7.3% increase from December. In the Asia-Pacific region, there are expectations of rising demand for petrol and jet cargo due to potential tariffs on Canadian and Mexican crude supplies, which has affected Singapore refiner margins.
In conclusion, the March 2025 increase in petroleum prices in Tonga stems from multiple factors, including higher international prices and a weaker domestic currency. The TCA’s approved adjustments reflect ongoing changes in the global oil market and local economic conditions. As the Tongan economy adapts, consumers will notice the impact of these adjustments in their daily fuel costs.
Original Source: matangitonga.to
