Petroleum prices in Tonga have increased for March 2025 as a result of higher international prices, reduced freight rates, and a weaker Pa’anga. The wholesale prices for petrol, kerosene, and diesel rose accordingly, leading to higher retail prices in Tongatapu. The adjustments are effective from March 3, following approval from the Tonga Competent Authority.
In March 2025, wholesale petroleum prices experienced notable increases due to rising international prices, reduced freight rates, and a weaker Tongan Pa’anga. Consequently, retail prices in Tongatapu also rose, with wholesale petrol, kerosene, and diesel prices increasing by 6.12, 12.81, and 14.33 seniti per litre, respectively.
Specifically, the retail price adjustments in Tongatapu were as follows: petrol climbed from $3.25 to $3.30 per litre, kerosene increased from $2.45 to $2.55 per litre, and diesel rose from $3.25 to $3.40 per litre. These changes are effective from March 3, as approved by the Tonga Competent Authority (TCA), following recommendations from the Ministry of Trade and Economic Development (MTED).
The price adjustments are calculated based on January 2025’s average of Platts Singapore benchmark prices for petroleum products and freight, taking into account the prevailing exchange rates. The evaluations utilize results from TCA meetings regarding annual and triennial reviews held in late 2024, combined with updated pricing templates.
Crude oil prices rose above $80 per barrel in mid-January but settled lower at $77 per barrel by month-end. January’s average Brent crude price was $78.35 per barrel, showing a 7.3% increase from December. Increased demand expectations in Asia-Pacific due to tariff threats on Canadian and Mexican crude have raised refined product prices, although diesel exports from the Middle East to Europe have pressured margins.
The primary factors driving the increase in product prices include the significant rise in crude oil prices, alongside the continued depreciation of the Tongan Pa’anga against the US dollar, which has weakened by approximately one percent, as reported by MTED. It is important to note that consumption tax is included in these price changes.
For further details, individuals can download the updated petroleum prices for March 2025.
In conclusion, March 2025 has brought about an increase in petroleum prices in Tonga due to higher international costs, the weakening of the Tongan Pa’anga, and adjusted freight rates. The adjustments in wholesale and retail prices reflect ongoing trends in the global oil market and domestic economic conditions, which continue to influence consumer costs significantly.
Original Source: matangitonga.to
