Pump prices increased markedly in the past year, hitting a high of $3.42 for 95-octane on 30 June 2022. They have since dropped but are still higher than a year ago. The price of fuel has contributed to inflation and is creating some hardship for those who need to drive for a living.
With this concern in mind, I asked the Minister for Trade and Industry when the results of the review conducted by the Competition and Consumer Commission of Singapore (CCCS) on alleged anti-competitive behaviour by fuel retailers during the spike in commodity prices in the first half of the year will be released. I further probed whether such a review will be conducted periodically henceforth.
This was Minister for Trade and Industry Gan Kim Yong’s written reply:
“Last month Minister of State Low Yen Ling updated the House that fuel prices in Singapore had risen in tandem with global crude oil prices. Global crude oil prices had increased significantly due to higher demand as economies reopen following the pandemic, coupled with tight supplies due to sanctions against Russia and the past years of under-investment in fossil fuel productions. MTI is currently reviewing the fuel retail market to determine if there are other ways to alleviate the pressure on fuel prices. This study will also examine how global developments, as well as the practices of the fuel retail operators, have led to the pricing trends seen so far.
To support the study, CCCS has required fuel retail operators to submit data and we will update the House when ready. In the meantime, we welcome the fact that petrol pump prices have fallen by 7% to 12% since early July. As to whether such a review will be conducted periodically henceforth, future reviews would depend on market conditions and the practices of the industry players. The Government is committed to ensuring a competitive fuel retail market and we are continuing to monitor the actions of the fuel retail operators closely.”
I am glad to learn from the Minister’s answer that the CCCS has required fuel retail operators to submit data in order to conduct a study on the fuel retail market and determine if there are other ways to alleviate the pressure on fuel prices. I will be following up to ask for more details of this study, as high pump prices are a concern for many Singaporeans.
