The Competent Authority has approved the new petroleum prices for April-May 2011 to be effective from Monday 18th April 2011 and therefore wish to notify the public accordingly. Retail price for all products have increased significantly compared to the price for March-April 2011. The retail price for April-May 2011 for Diesel leads the increase by 18 seniti to $ 3.07 per litre, followed by Kerosene at 16 seniti to $2.45 per litre, and Petrol have increased by 13 seniti to $ 2.93 per litre. Petroleum prices for April-May 2011 are mainly determined by the movement of FOB prices in the Singapore market based on March 2011 average prices of the daily published Means of Platts Singapore (MOPS) benchmark prices.
The significant increase in April-May 2011 price is attributed to political instability in the petroleum supply countries putting pressure on the oil market, unstable situation in Libya thus pushed the prices up by US$10-US$15/bbl, increase petroleum demand especially from Asian developed countries and the United States. On average, crude prices rose by about US$10/bbl higher in March than in February 2011. Freight cost from last month remains steady whilst the value of Tongan Pa`anga has weakened against US dollar a little (0.6%) in March 2011, therefore adding to the upward price pressure.
Ministry of Labour, Commerce and Industries
15 April 2011