Petroleum prices increased in March 2025 due to higher international prices, a reduced freight rate, and a weaker Pa’anga, resulting in elevated retail prices for petrol, kerosene, and diesel in Tongatapu. The Ministry of Trade and Economic Development confirmed these changes, effective March 3.
In March, petroleum prices rose due to higher international costs, reduced freight rates, and a weaker Pa’anga. Consequently, retail prices for petrol, kerosene, and diesel in Tongatapu also saw an increase. Specifically, wholesale prices rose by 6.12, 12.81, and 14.33 seniti per litre for petrol, kerosene, and diesel, respectively.
The retail prices adjusted from $3.25 to $3.30 per litre for petrol, $2.45 to $2.55 for kerosene, and $3.25 to $3.40 for diesel. The Ministry of Trade and Economic Development (MTED) announced these new prices, which are effective from the 3rd of March 2025, as approved by the Tonga Competent Authority (TCA).
The increase is tied to the January 2025 average of the Mean of Platts Singapore (MOPS) benchmark prices and freight costs, together with the associated exchange rate. Recommended wholesale prices are based on decisions made by the TCA during previous annual reviews, using updated pricing templates from suppliers.
Brent crude oil prices experienced fluctuations, rising above US$80/bbl in mid-January before settling at US$77/bbl, averaging US$78.35/bbl for the month—marking a 7.3% increase from December. In the Asia-Pacific region, higher expected demand for petrol and jet cargoes was influenced by tariff threats on Canadian and Mexican crude, resulting in increased Singapore refiner margins and refined product prices.
Conversely, unfavorable export conditions for diesel from the Middle East to Europe intensified diesel shipments into the Asia-Pacific, which exerted downward pressure on refiner margins. The notable rise in crude prices significantly impacted all product pricing, compounded by a one percent depreciation of the Tongan pa’anga against the US dollar. All price changes incorporate consumption tax.
In summary, petroleum prices in March 2025 have risen due to international trends and the weakening of the Tongan pa’anga. Retail prices for key fuels have adjusted accordingly following the TCA’s approval. Future trends will be influenced by crude oil pricing and regional demand dynamics. Ultimately, these developments reflect the intricate interplay of global oil markets and local economic conditions.
Original Source: matangitonga.to
