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Are Petrol Prices in Singapore pegged to Crude Oil Prices?

http://www.singaporebudget.gov.sg/budget_2015/bib_pg.aspx

Extracted from http://goo.gl/LVjHWS

After the announcement of Budget 2015, petrol companies were prompt in implementing the new petrol duty tax. Petrol duty tax for premium grade petrol (98-Octane) increased 20 cents to 64 cents, while intermediate grade petrol (92-Octane & 95-Octane) increased 15 cents to 56 cents. Since then, there was much debate on whether the companies were profiteering as some of the companies raised the pump prices in excess of the hike from the petrol duty tax.

In March 2015, I was honoured to be invited by MediaCorp producers to attend “Talking Point” to give my personal views as both a driver and a consumer. If you have missed this episode, you can head to Toogle and watch the recorded version. During the commercial break discussion with an oil industry veteran (Mr. Ong Eng Tong), I finally understood the background as to why the petrol prices in Singapore are priced similarly across the different companies. He shared much on the common business practices of the petrol industries. In summary, it is similar to how the telcos in Singapore operate and that is by sharing key infrastructures. Another key lesson learnt for myself is the understandings of the different petrol grades. Since that day onward, I decided to pump 95-Octane for my newly purchased car instead of 98-Octane. After trying out a few full tanks of 95-Octane petrol, I concluded that Octane level did not have relationship with the fuel consumption on my Kia Forte K3. Lastly, Mr. Ong also shared during the show on the different components that determines the pump prices as below:

Petrol Price Composition

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