Pump prices in Singapore unchanged despite plunge in oil prices

A litre of 92-octane and 95-octane petrol is reportedly listed at $2.05 and $2.09 respectively across all brands - ST

SINGAPORE (The Straits Times/ANN): Fuel pump prices have not moved since late March, despite crude oil prices falling to below zero on Monday (April 20) before rebounding.

According to Bloomberg, a barrel of West Texas Intermediate (WTI) crude was at a record low of US$1.69 at 9.40pm on Monday, while Brent crude was at US$25.92.

Despite that, pump prices here remained stable.

According to Fuel Kaki, a Consumers Association of Singapore portal that tracks fuel prices, a litre of 92-octane and 95-octane petrol is listed at $2.05 and $2.09 respectively across all brands.

These prices, before discounts, have remained unchanged since March 25, when WTI was around US$20 and Brent around US$26.

A litre of 98-octane is listed at between $2.43 and $2.69, while diesel is between $1.69 and $1.72.

Motorists have long complained that pump prices often reflect an increase in oil prices quickly, but are slow to reflect drops.

Jeremy Chua, editor of online motoring magazine Torque, said: "There is no transparency in the pricing of petrol and diesel in Singapore. This is why time and time again, consumers accuse oil companies of collusion and cartel-like behaviour.

"Until transparent pricing is mandated, these accusations will continue."

In a Parliamentary sitting on March 25, Lee Bee Wah (Nee Soon GRC) asked if retail prices at petrol pumps reflected the plunge in crude oil rates, which had fallen sharply in earlier months.

She also questioned the time lag in the price decrease being passed on to customers.

Senior Parliamentary Secretary for Trade and Industry and Foreign Affairs Tan Wu Meng said retail petrol prices here had, in fact, fallen with the steep decline in crude oil prices.

He noted that between Jan 2 and March 9, oil prices had plunged from US$66 a barrel to US$34.

Dr Tan said that more than three-quarters of the drop in the price of crude oil was passed on to customers.

"The listed price of octane 95 petrol fell by 20 cents per litre, with a slight lag of six days," he said.

"This represents a pass-through of over three-quarters of the decrease in crude oil price."

Dr Tan noted that crude oil has to go through refining and processing before it becomes petrol at the pumps.

"There will also be operating costs, taxes, duties and land costs on the one hand, as well as discounts and rebates on the other hand," he added.

So, a pass-through rate of about 70 per cent is typical, Dr Tan said, citing an in-depth study on retail petrol prices in 2017 by the then Competition Commission of Singapore.

The survey also found that, on average, petrol prices take longer to go up when global crude oil prices increase, compared with the decrease when crude oil prices fall.

The Straits Times has reached out to oil companies for comment. - The Straits Times/Asia News Network

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Singapore , pump , oil , prices , unchanged , petrol


Did you find this article insightful?


43% readers found this article insightful

Next In Regional

Thai woman sentenced to 43 years in jail for insulting monarchy
Google backs Indian courier startup Dunzo in $40 million fundraising
MCO 2.0 to cost Malaysia RM600m daily, Zafrul says
Japan's Okinawa declares coronavirus emergency as cases spike
TikTok owner ByteDance launches Douyin Pay, its mobile payment service for China
Covid-19: Cases up by 3,631, bringing total to 165,371 (updated daily)
Covid-19: 3,631 new cases, 14 fatalities bring death toll to 619
Japan bets on robots to increase Covid-19 testing with Olympics near
Ismail Sabri: 590 people arrested for violating MCO on Monday (Jan 18)
KLCI reverses gains, falls 7.64 points

Stories You'll Enjoy