Tonga’s Competent Authority says the COVID-19 economic disorder has led to substantial fluctuations in global energy demand and supply.
The COVID impact continues to affect the petroleum prices with the average monthly Dated Brent crude oil drop in mid-March to mid-April at USD 20.87 bbl then increasing to USD41.52 (Oct 2020 average), USD 65.70 (March 2021 average) and with the July 2021 average up to USD 74.29 bbl.
The Government as a result, has made efforts to help hold down the continuous increase through a 5 seniti subsidy on the May- June petroleum pricing and a further reduction in excise duty of 10 seniti in the July – August petroleum pricing.
The Competent Authority says the reduction in duty is estimated to cost the Government over $4 million annually.
Despite the efforts, the international crude oil and petroleum prices continued to rise which will again result in further increases for the August – September pricing.
Meanwhile, crude prices fell in early August, and if the prices continue to hold at this level or continue to fall, the Competent Authority will expect a drop in retail prices next month in Tonga.
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