Petrol & diesel prices in S’pore increase amid growing conflict in Middle East

Petrol stations across Singapore raise pump prices, oil supply channels affected by ongoing Middle East conflict

Drivers are set to feel a the pinch on their wallets, after most petrol companies in Singapore raised pump prices amid escalating conflict in the Middle East.

The increases come as disruptions to oil shipping routes and production facilities push global energy prices higher.

Prices climb across major petrol stations

According to the Price Kaki app — a price tracker app by the Consumer Association of Singapore (CASE) — petrol prices at major providers across Singapore have mostly increased.

Shell was the first to move, raising its 95-octane petrol price to S$2.92 per litre on 3 March.

Operators like Caltex, Esso, and Sinopec soon followed suit.

SPC is currently the only major provider that has not increased its 95-octane petrol price, which remains at S$2.87 per litre at the time of writing.

For 92-octane petrol, SPC’s price remains at S$2.84 per litre. However, Caltex and Esso have raised theirs to S$2.88 per litre.

Shell and Sinopec do not offer 92-octane fuel.

For regular 98-octane petrol, SPC is again the cheapest at S$3.38 per litre. Esso and Sinopec have increased prices to S$3.42 per litre, while Shell is the most expensive at S$3.44 per litre.

Diesel and premium fuel also see hikes

Diesel and “premium” 98-octane petrol have also risen.

“Premium” 98-octane fuel now ranges from S$3.55 per litre at Sinopec to S$3.66 per litre at Shell.

Diesel prices at Esso, Caltex, and Shell have increased by 13 cents to S$2.70 per litre. Sinopec’s diesel stands at S$2.66 per litre.

Once again, SPC is the only operator that has yet to raise its diesel price, which remains at S$2.57 per litre.

Price increase linked to ongoing Middle East conflict

The price increase has been linked to the ongoing conflict in the Middle East, which has severely disrupted maritime traffic around the Strait of Hormuz — a critical oil shipping route.

The strait, which separates Iran from the United Arab Emirates and Oman, handles an estimated 20% of the world’s oil supply.

According to ABC News, following heightened conflict involving the United States, Israel, and Iran on 28 Feb, tanker traffic through the strait reportedly dropped to virtually zero as of 3 March.

Deputy Prime Minister (DPM) Gan Kim Yong warned in a speech in Parliament on Monday (2 March) that the conflict could weigh on both global growth and Singapore’s domestic economy.

He also noted that this would result in an increase in global energy prices.

Qatar has also halted its natural gas production after Iranian attacks on production plants, while an oil refinery in Saudi Arabia has shut down after it was hit by Iranian drone attacks, according to The Straits Times.

Netizens divided over price hike

On the r/singapore Reddit page, reactions towards the increase in pump prices have been mixed.

Some users said the increase was relatively small and urged others not to panic.

However, some disagreed, with one netizen pointing out that the situation was “almost guaranteed” to worsen.

A few questioned why prices were rising so quickly, noting that current petrol supplies were refined from crude oil purchased at previously lower prices.

Some also pointed out that Singapore motorists could still drive to Johor Bahru for cheaper fuel.

Singapore last saw record-breaking pump prices in 2022, when Shell’s “premium” 98-octane V-Power petrol hit S$4.04 per litre amid supply disruptions caused by the Russia-Ukraine conflict.

Also read: DPM Gan Kim Yong warns Middle East conflict could drive up energy prices & affect S’pore’s growth

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Featured image adapted from UOB