S’pore Petrol Tax Raised Up To $0.15/Litre, Govt Rolls Out Rebates To Cushion Blow

Singapore Petrol Tax To Increase By $0.15 For Premium Fuel

Much of Budget 2021 might be dedicated to the challenges brought about by the Covid-19 pandemic, but we must also be conscious about the issues we face moving forward while dealing with those in the immediate future.

Covid-19 Resilience Package Unveiled In Budget 2021, Worst-Hit Sectors Will Get More Support

One of the long-term challenges is climate change.

To tackle climate change, the government will be subsidising costs related to electric vehicles while raising petrol duties.


The increase in petrol taxes will start on Tuesday (16 Feb).

Increase in fuel tax to start immediately

During the Budget 2021 speech, Finance Minister Heng Swee Keat said that petrol duty charges will be raised by

  • $0.15 per litre for premium-grade petrol
  • $0.10 for intermediate-grade petrol

The increase in petrol duties will start with immediate effect.

Government introduce rebates to cushion blow to motorists

To help Singaporeans who rely on their vehicles for their livelihoods, the government will provide additional support to offset the increase in petrol duties.

Private car drivers who use petrol will receive the least, with 15% of road tax rebate for 1 year.

Active taxis and Private-Hire drivers driving petrol or petrol-hybrid vehicles will receive $360 worth of Petrol Duty Rebates – paid out over a period of 4 consecutive months – in addition to the 15% road tax rebate.

Motorcyclist using petrol will receive 60% road tax rebate for a year and petrol duty rebates depending on their bike’s engine capacity:

  • Motorcycles below 200cc: $80 petrol duty rebate
  • Motorcycles above 200cc: $50 petro duty rebate

Businesses that depend on transportation will enjoy the most, with commercial vehicles using petrol receiving 100% rebate on their road tax for a single year.

These measures will start from 1 Aug 2021 and more information will be revealed in April.

The subsidies above are expected to reportedly offset 1 year worth of petrol duty increases for taxis and motorcycles, and 8 months’ worth of petrol taxes increases for commercial vehicles and private cars.

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