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January 7, 2009 Wednesday
Updated
Jan 7, 2009
Pump prices up 4 cents
By Christopher Tan

PUMP prices have risen for the first time since July last year.

Oil companies, led by Shell, on Tuesday raised petrol and diesel rates at the pumps by four cents a litre across the board.

With the first increase after a continuous trek south since last July, 98, 95 and 92-octane petrols are now sold at $1.62, $1.546 and $1.538 a litre before discount respectively.

So-called ultra-premium fuels Shell V-Power and Caltex Platinum are $1.799 and $1.796 a litre.

Diesel, used predominantly by taxis, buses and commercial vehicles, is now $1.283 a litre.

Industry experts said production cuts by Opec and Russia turning off natural gas supply to Europe had pushed oil prices up in recent weeks.

On Tuesday, crude oil rose above US$50 a barrel - a three-week high - before softening a tad on Wednesday.

Experts point to a natural gas dispute between Russia and Ukraine as a leading cause of the price spike. Production cuts by Opec have contributed, too.

Observers however said the deepening recession in the United States, the world's largest consumer, will mean that the current rally is unlikely to be sustainable.

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