Fuel stable but costs rising as Tonga faces growing pressure

Fuel supplies remain stable in Tonga, but rising prices are already hitting households and businesses across the kingdom.

Tonga’s Prime Minister, Lord Fakafanua has confirmed the country remains under a “green light” fuel status, meaning there are no immediate shortages or restrictions on use.

But the cost of fuel is climbing, placing pressure on transport, goods, and daily living.

Speaking to media in Nuku’alofa on Friday, Fakafanua says the current fuel stocks are expected to meet demand through the rest of April as shipping schedules are being finalised.

However, he revealed that Tonga’s cheapest fuel importer recently sought to increase prices by 100 per cent before the government stepped in and negotiated it down to 50 per cent.

He says the increase is now feeding through to higher costs on the ground.

The main two fuel providers in Tonga are Pacific Energy and TotalEnergies. These companies dominate the market, with Pacific Energy supplying approximately 80 per cent and TotalEnergies covering the remaining 20 per cent. Photo/PMN News/Ala Vailala

Fuel demand has dropped by around 20 per cent in recent weeks, which Fakafanua attributes to rising prices.

He said demand patterns remain difficult to fully assess.

Tonga’s fuel alert system remains unchanged for now, but Fakafanua signalled a possible move to “yellow light” status in the coming weeks, a step that would indicate tighter supply conditions, even if fuel is still available.

Christopher Luxon visited Tonga in March during his first 2026 overseas visit. Photo/PMN News/Ala Vailala

The situation is being driven by global instability linked to tensions in the Middle East, which could disrupt fuel supply chains and push up prices.

With costs rising, the government is exploring support options, including potential subsidies and targeted assistance programmes for households and businesses.

Fakafanua says longer-term plans include electric buses and expanded public transport across Tongatapu into Nuku’alofa, although progress remains slow after many bus operators collapsed during the Covid-19 pandemic.

Meanwhile, Tonga Power has warned the country’s heavy reliance on diesel is placing increasing strain on electricity generation.

The utility says it has emergency fuel reserves equivalent to three months of supply stored in Fiji, and Fakafanua said he has been reassured by Fiji’s Prime Minister, Sitiveni Rabuka, that Tonga will continue to have access to fuel even if supply tightens.

But Scott Westbury Tonga Power CEO said there is little that can be done in the short-term to ease costs.

Watch Lord Fakafanua's press conference below.

“Longer term, we need to try and find cheaper sources of energy but right now, we are booking at a larger solar project with batteries and there’s a number of other fuels that are in the pipeline as well,” Westbury told journalists.

These solutions are still at least 18 months to two years away.

“We’ve got a lot of work to do to catch up, so in the short answer, there’s nothing we can do in the short term,” Westbury said.

For now, fuel is available but for many in Tonga, it is becoming harder to afford.