Forum: Different discounts make petrol prices opaque

Demand for other types of oil and excess supply affect what drivers eventually pay for petrol at the pump. Other factors include petrol companies' operating costs, land costs, duties and taxes, discounts and rebates.
Demand for other types of oil and excess supply affect what drivers eventually pay for petrol at the pump. Other factors include petrol companies' operating costs, land costs, duties and taxes, discounts and rebates. ST PHOTO: NG SOR LUAN

The authorities and watchdog bodies, especially the Consumers Association of Singapore and the Competition and Consumer Commission of Singapore, should look into how petrol stations grant different discounts, which make the actual price per litre opaque (Why petrol prices may not fall in tandem with oil prices, May 27).

The actual price that one pays at each petrol station can range from no discount when paying in cash to as high as a 20 per cent discount with various loyalty cards and credit cards.

This disparity is alarming. It takes a genius to figure out which station is offering the lowest prices with a permutation of loyalty cards.

The other day, I saw a motorcyclist pay $5 for his petrol using cash without any discount. Why do we penalise the poorest in our midst?

The operating cost of a petrol kiosk in Newton with 10 employees is different from a kiosk with three employees in Mandai. Why, then, are they selling at the same price?

In countries such as Germany and France, petrol is cheapest in the city due to competition.

As one moves farther away from the city, petrol costs more due to demand and supply. It is also more expensive on Fridays when demand surges.

Net petrol prices are displayed boldly outside each kiosk.

The authorities should make petrol companies do away with discounts based on the method of of payment. This would be fairer to all consumers.

James Wong Joo Sin

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A version of this article appeared in the print edition of The Straits Times on May 29, 2020, with the headline Forum: Different discounts make petrol prices opaque. Subscribe