- Keep your tyres properly inflated
- Clean out your trunk
- Use the motor oil recommended for your vehicle
- Reduce your miles travelled
- Avoid aggressive driving
Our mobility is largely powered by petrol and diesel. That is why pump prices are always a concern for us.
We want to know: "Why are we seeing the rise and fall of pump prices? What makes up pump prices here in Singapore?"
The answers are simple though the factors that influence the prices are not. Retail pump prices in Singapore, as with all other products, are affected by a combination of factors. These include:
Let's look at each of these factors in greater detail.
Wholesale fuel prices make up between 30-50 per cent (depending on market conditions) of pump prices here in Singapore. These wholesale prices are the result of the actions of thousands of buyers and sellers operating in a global marketplace and crude oil prices are just one of the many determinants of wholesale fuel prices.
As Singapore relies wholly on imports to satisfy its energy demand, it is a receiver of these products at market wholesale prices.
Taxes and duties make up a portion of pump prices. The petrol excise duty in Singapore is set at a rate of $0.56 per litre for 92- and 95-octane petrol, and $0.64 per litre for petrol rated 97-octane and above. As with all other products, there is the additional seven per cent GST charge.
Fuels are traded in US$ per barrel. When the Singapore dollar moves up or down against the US dollar, consumers will be impacted.
The remaining cost components of pump prices include not only the operating and marketing costs (discounts, promotions), but also capital cost (e.g. land cost) and margins.
In a small geographic area like Singapore, where there are large overlapping networks of retail service stations of various brands, customers enjoy the benefits brought about by a highly competitive market. Through our alliance with NTUC FairPrice, all our Esso stations in Singapore offer more value and convenience to our customers.