16 Jan 2013, The Competent Authority has approved the new petroleum prices for January- February 2013 to be effective from Wednesday 16th January 2013 and therefore wish to notify the public accordingly.
Wholesale and Retail price Diesel, Kerosene and Petrol for January-February 2013 have slightly decrease compared to the price for December 2012- January 2013. The retail prices for January – February 2013 for Petrol have decreased by 1.01 seniti per litre to $2.79 seniti per litre [equivalent to 0.36% decrease]. Diesel have decrease by 0.97 seniti per litre to $2.88 seniti per litre [equivalent to 0.33% decrease] and Kerosene have decreased by 0.88 seniti per litre to $2.28 seniti per litre [equivalent to 0.38% decrease]. All changes including consumption tax.
Petroleum price for January – February 2013 is mainly determined by the movement of FOB prices in the Singapore market based on December 2012 average prices of the daily published Means of Platt’s Singapore [MOPS] benchmark prices. Recommended wholesale prices have been calculated using the Tonga Fuel Price Template [TFPT] agreed and issued during the 2011 Annual Price Review.
The slight decrease in the price of Kerosene, Diesel and Petrol for January – February 2013 is attributed to the following reasons:
• Crude oil prices have remained remarkably stable given the economic uncertainly in the Northern Hemisphere and political unrest in the Middle East. The Dated Brent benchmark average US$109/bbl in December, almost the same as the previous month.
• Dated Brent has been trading between US$107-$111/bbl in December supported by Northern Hemisphere winter heating fuel demand. Cold weather has also increased demand in Japan and Korea.
• The Date Brent averaged just over US$111.57 for 2012. Oil prices have risen due to potential supply disruptions in the Middle East and sanctions against Iran. Uncertainty is likely to remain high this year given the expectations of a strong crude oil production growth mainly from non OPEC countries [particularly US shale oil] and the impact of high prices on oil consumption.
• Product prices eased slightly over the month. Comparing December month average prices to November petrol prices were down by US$0.58/bbl, with kerosene and diesel down by US$0.46/bbl and US$0.54/bbl respectively.
• The Tongan Pa’anga was relatively steady against the US dollar so the drop in product prices fed through to a small drop in local prices.
• The freight market strengthened, resulting in an increase in the overall freight component in this month’s prices, and offsetting some of the drop in the benchmark prices.
The net results are a slight decrease in all three products prices for January – February 2013. Wholesale petrol fell by 1.01 seniti/litre with kerosene and diesel also down by 0.89 seniti/litre and 0.97 seniti/litre respectively. All changes include consumption tax.
Issued by the: Ministry of Commerce, Tourism & Labour.