Petroleum prices in Tonga rose in March 2025 due to higher international prices, decreased freight rates, and a weaker Pa’anga. Wholesale prices increased by 6.12, 12.81, and 14.33 seniti per liter for petrol, kerosene, and diesel, respectively. Retail prices in Tongatapu also spiked. The Ministry of Trade confirmed the adjustments based on January averages and prior TCA recommendations.
In March 2025, petroleum prices in Tonga increased due to several factors, including rising international prices, lower freight rates, and the depreciated Pa’anga. Consequently, wholesale prices for petrol, kerosene, and diesel rose by 6.12, 12.81, and 14.33 seniti per liter, respectively. This led to retail price increases in Tongatapu, with petrol rising from $3.25 to $3.30 per liter, kerosene from $2.45 to $2.55, and diesel from $3.25 to $3.40.
The Ministry of Trade and Economic Development (MTED) confirmed these new prices, effective from Monday, March 3. The adjustments reflect January 2025 average prices based on the Mean of Platts Singapore (MOPS), freight costs, and the exchange rate. Wholesale prices were calculated in accordance with decisions made during TCA meetings in August and October 2024, utilizing supplier data from regular reviews.
Crude oil prices exhibited volatility, climbing above US$80 per barrel in mid-January but stabilizing at US$77 by month’s end, resulting in an average Brent price of US$78.35, marking a 7.3% increase from December. In the Asia-Pacific region, increased demand for petrol and jet cargos was prompted by potential tariffs against Canadian and Mexican crude, which in turn bolstered Singapore refiner margins.
However, unfavorable diesel export opportunities from the Middle East to Europe pressured these margins downward. The increase in crude oil prices is the main driver of product price hikes. Additionally, the Tongan Pa’anga weakened about one percent against the US dollar, compounding the impact on prices, according to MTED. All price changes include consumption tax.
The March 2025 petroleum price adjustments in Tonga are primarily attributed to rising international crude prices, decreased freight rates, and the weakening Pa’anga. These factors have led to increased wholesale and retail costs for petrol, kerosene, and diesel. The price escalation and conditions in the Asia-Pacific market illustrate the complex dynamics influencing fuel pricing in Tonga, further exacerbated by exchange rate fluctuations.
Original Source: matangitonga.to
