Fuel prices in Singapore have climbed sharply again, with major petrol companies raising pump prices as the prolonged Middle East conflict continues to disrupt global oil markets.
SPC raised its petrol prices by 12 cents per litre across its petrol grades on Sept. 19, while diesel went up by 8 cents. Sinopec followed on Sept. 20 with another 12-cent increase across its petrol and diesel offerings.
Following the latest adjustments, 95-octane petrol is priced at S$3.48 per litre at SPC and S$3.49 at Caltex, Esso, Shell and Sinopec, before discounts. SPC’s diesel is S$3.97 per litre, while diesel at the three major multinational brands is S$4.07.
The increases mean Singapore’s major fuel retailers have all raised pump prices during the week, marking a rapid reversal after prices had remained relatively stable for about two months.
The latest wave began on Sept. 14, when major retailers increased prices by between 8 and 12 cents per litre. Diesel at the biggest brands subsequently moved above S$4 per litre as the Middle East conflict pushed international energy markets higher.
The pressure is not limited to petrol. Global diesel markets have also been hit by major supply disruptions linked to the conflicts in the Middle East and Ukraine. European diesel futures recently reached record levels, while Middle Eastern diesel exports were reported to have fallen sharply compared with a year earlier.
Oil prices have remained highly volatile. Although crude prices eased recently on hopes of renewed US-Iran diplomacy and signs that Saudi Arabia could restore some disrupted exports, the underlying supply risks remain significant.
For Singapore, which imports virtually all of its energy needs, movements in international crude and refined-fuel markets can feed through into pump prices and transportation costs. Higher diesel costs can also affect commercial transport and businesses that rely heavily on fuel.
The Government has already introduced targeted assistance for some sectors affected by higher diesel costs. Three public waste collectors are receiving temporary relief for additional diesel expenses incurred between March and May amid the earlier surge in fuel costs.
With oil markets still being influenced by attacks, disrupted export routes and uncertainty over US-Iran diplomacy, the question for motorists is whether the latest Singapore pump-price increases mark the peak — or whether another round of fuel hikes could still be ahead.
