Pump prices up across the board after petrol duty hike

An Esso station along Upper Serangoon Road in December 2014. Pump prices across all four petrol companies were up on Tuesday, following Monday's Budget announcement of a hike in petrol duties. -- PHOTO: ST FILE 
An Esso station along Upper Serangoon Road in December 2014. Pump prices across all four petrol companies were up on Tuesday, following Monday's Budget announcement of a hike in petrol duties. -- PHOTO: ST FILE 

SINGAPORE - Pump prices across all four petrol companies were up on Tuesday, following Monday's Budget announcement of a hike in petrol duties.

The most popular grade of petrol, 95-octane, now costs between $2.01 and $2.04 per litre. Premium grade petrol, such as 98-octane, now ranges from $2.20 a litre at the Singapore Petroleum Company, to $2.65 for Shell's V-Power. All prices are before discount.

Deputy Prime Minister Tharman Shanmugaratnam said on Monday the increase in petrol duties, which have remained unchanged since 2003, will "encourage less car usage and reduce carbon emissions".

The tariff for premium grade petrol is now 64 cents a litre, up by 20 cents, while the duty for intermediate-grade petrol - such as 92-octane and 95-octane - is 56 cents per litre, up by 15 cents.

Drivers said they would probably not change their travel patterns, despite the higher petrol prices.

Shipping executive Josh Tan, 35, said: "I don't think any of my habits will change as the convenience of private transport still outweighs the cost."

Mr C.K. Poh, 42, who runs a landscape and interior design business, said he "cannot do without the car", as he has to travel frequently.

"But perhaps I will travel less for the weekend or take public transport," he added.

To ease the burden of the higher costs, the Government also announced a one-year road tax rebate of 20 per cent for cars and 60 per cent for motorcycles.

The one-year rebates are expected to cost the Government $144 million. Meanwhile, the hike in petrol tariff is expected to yield about $177 million more a year.

adrianl@sph.com.sg