It was the fifth consecutive slide in three weeks, and it came amid plummeting crude oil prices, which slumped to US$123 a barrel last week. That was down from a record high of more than US$147 a barrel earlier this month.

Mr Ng Weng Hoong, editor of energy news portal EnergyAsia.com, called the drop in oil prices a blip, saying it was triggered by concerns with credit, jobs and inflation.

With northern countries poised to stock up on heating oil for the winter, low prices are unlikely to last, he said. 'You will see some short-term volatility. Prices could well fall further, but the long-term picture is still bullish.'

The 10-cent drop at Singapore's pumps yesterday pulled a litre of 92-octane petrol to $2.003 before discount, 95-octane to $2.036, and 98-octane to $2.11.

The so-called ultra-premium petrol is 10 cents cheaper, too. Shell's V-Power is now at $2.239 a litre, while Caltex's Platinum retails for $2.236. Diesel is at $1.863.

Light sweet crude ended last week at US$123.26 a barrel on the New York Mercantile Exchange - US$24.01 lower than two weeks earlier.

The downward spiral has been attributed to lower demand, as drivers cut back on trips and car buyers shy away from petrol guzzlers like sport utility vehicles. The recent strengthening of the US dollar, which is used to trade oil, has also helped to drive prices down.

Compressed natural gas (CNG), meanwhile, remained unchanged in Singapore at close to $1.80 a kg.

Mr Johnny Harjantho, the managing director of Smart Energy, which operates Singapore's biggest CNG refuelling station in Mandai, said the wholesale price of CNG is likely to rise further next month.

The company will, nevertheless, reduce pump prices 'purely for goodwill', he added.

He said Smart would add more hoses at its station by December to cope with rising demand. It also aims to open a new station in Serangoon North by early next year.

Even though petrol and diesel prices have fallen by around 10 per cent since early this month, they are still 30 per cent and 50 per cent higher than they were in January last year.

christan@sph.com.sg

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