March 2025 Petroleum Prices See Significant Increases
In March 2025, wholesale petroleum prices increased due to higher international prices, lower freight rates, and a weakened Pa’anga. Retail prices for petrol, kerosene, and diesel in Tongatapu also rose. The Ministry of Trade and Economic Development confirmed the Tongan Competent Authority’s approval of the new prices based on recent market data.
In March 2025, there was an increase in petroleum prices due to higher international rates, declining freight costs, and the depreciation of the Pa’anga. Consequently, the wholesale prices for petrol, kerosene, and diesel rose by 6.12, 12.81, and 14.33 seniti per liter, respectively, resulting in higher retail prices for these fuels in Tongatapu.
Specifically, the retail prices climbed from $3.25 to $3.30 per liter for petrol, from $2.45 to $2.55 per liter for kerosene, and from $3.25 to $3.40 per liter for diesel. The Ministry of Trade and Economic Development (MTED) confirmed that these price adjustments were authorized by the Tonga Competent Authority (TCA), taking effect from Monday, March 3rd.
The changes in petroleum prices reflect the average of published daily Mean of Platts Singapore (MOPS) benchmark prices for January 2025, including product prices, freight, and the month’s exchange rate. The figures were influenced by decisions made during the TCA’s annual and triennial reviews in August and October 2024.
In January, crude oil prices peaked above US$80 per barrel but decreased to US$77 per barrel by month’s end, averaging US$78.35 per barrel, marking a 7.3% increase from December. Within the Asia-Pacific region, demand projections for petrol and jet cargo increased amidst tariff threats on Canadian and Mexican crude, leading to rising refined product prices.
However, diminished export opportunities for diesel from the Middle East to Europe increased Asia-Pacific diesel exports, impacting Singapore refiner margins negatively. The MTED noted that the substantial rise in crude oil prices was a principal factor in the product price increases, while a one percent decline in the Tongan pa’anga against the US dollar also contributed to these changes. The consumption tax remains included in all price modifications.
In summary, March 2025 witnessed an increase in petroleum prices due to the impacts of international price fluctuations, reduced freight rates, and the weakening Pa’anga. The retail price changes were formally approved and reflect current global market conditions, including crude oil price variations and regional demand influences. The overall economic environment continues to affect local fuel prices, and consumers should be prepared for these changes in their fuel expenditures.
Original Source: matangitonga.to
