SINGAPORE (The Straits Times/ANN): Pump prices, which have risen steadily here since the conflict in Iran effectively closed a waterway critical to oil supplies, have surpassed records set during the Ukraine crisis in 2022.
Caltex raised the posted price of 95-octane petrol by 10 cents to $3.45 per litre at 2pm on March 13.
Its previous high was $3.42 per litre set by Shell and Caltex in June 2022, according to records available on the Consumers Association of Singapore’s Price Kaki price tracker. This came after the European Union announced a ban on Russian oil following its invasion of Ukraine.
Posted prices do not consider discounts, and may be higher than what drivers pay at petrol stations.
The most popular grade of petrol is now 57 cents, or almost 20 per cent, more expensive at Caltex than on Feb 28, when the US and Israel launched an attack on Iran.
That is the equivalent of paying $28.50 more to top up a vehicle with a 50-litre fuel tank before factoring in discounts.
Petrol station operators have been raising their prices, at times more than once a day, as global crude prices see-sawed along with developments in the Middle East.
The largest move in 95-octane since the outbreak of the Middle East conflict was also by Caltex, which raised posted prices by 20 cents past midday on March 10.
The grade is priced at $3.40 per litre Shell, Esso and Sinopec, with cheapest being $3.39 per litre at SPC.
Posted prices of 92-octane petrol, 98-octane petrol and the so-called “premium” 98-octane petrol crossed Ukraine war highs in recent days.
Major petrol stations are also pricing diesel higher than the peak of $3.19 per litre recorded in March 2022, when Russia’s invasion of Ukraine intensified.
Some taxi operators stepped in earlier this month to absorb part of the increase in fuel costs at in-house pumps.
ComfortDelGro (CDG), Singapore’s largest taxi operator, was offering petrol at $1.93 per litre on March 5. It raised the price of petrol by 38 cents to $2.31 per litre on the morning of March 11.
CDG has said its rates, which were significantly lower than the posted prices being offered at petrol stations, would benefit its taxi and private-hire drivers.
The Straits Times understands that the company is coming up with more measures to support its drivers, with no end to the Iran war in sight.
Strides Premier, which runs the Republic’s second largest taxi fleet, is also offering fuel at rates lower than “most fuel stations in the market”.
Ms Khoo Gui Ju, general manager of the firm’s vehicle leasing business, said the initiative complements some of its existing rental schemes, which gives drivers fuel credits to help offset their operating costs.
Ms Khoo said: “These measures are aimed at easing operating expenses and supporting the livelihoods of our driver-partners.
“We will continue to monitor fuel price movements closely and assess if additional measures may be introduced to further support our driver-partners where necessary.”
Ride-hailing platform Grab provides fuel discounts through its partnerships with Caltex, Shell and Sinopec to help driver and delivery partners manage costs.
Group CEO and co-founder Anthony Tan said on LinkedIn that his firm is focused on “providing immediate, interim relief - primarily through additional incentives and rebates - to best cushion the impact on partner earnings in the markets that don’t have price controls”.
He said: “In Cambodia, Myanmar, the Philippines, Singapore and Vietnam, a mix of spot bonuses, incentive rebates and petrol vouchers for our driver-partners are already live.”
Grab is also in discussions with governments, petrol companies and electric vehicle firms to find ways to protect the earnings of its drivers and delivery partners, over the long-term, Mr Tan said.
“These macroeconomic pressures are a challenge that requires a unified response, and we are committed to leading the effort to support our community through the volatility,” he added. When asked, Grab did not disclose the specific amount of support provided in the Singapore market.
Singapore does not produce crude oil and imports all that it needs, with most suppliers based in the Middle East.
The Strait of Hormuz has typically supported the transportation of oil and gas from the Middle East to countries in Europe and Asia.
The critical waterway, which usually handles a fifth of the world’s oil supply, has been effectively closed because of the conflict.
It is unclear how much of Singapore’s crude oil supply is being affected by the war.
Petrol prices here are fixed daily, with retailers considering the Mean of Platts Singapore (MOPS) average of daily price assessments published by S&P Global Platts, which are not made public.
The assessments have been volatile and skewed to the upside through most of the week of March 2, according to analysts.
Crude oil prices, which have risen since the war in Iran began, also heavily influence pump prices.
Caltex’s website states: “The cost of crude oil contributes to almost 50 percent of the retail price of petroleum.
“Political volatility in oil producing regions has historically impacted on crude oil prices and the political situation in the Middle East is of global concern.” -- The New Straits Times/ANN
