Shell drops petrol prices at the pump by 2 cents a litre

A Shell petrol kiosk on Feb 24, 2015. The oil giant reduced its petrol pump prices by 2 cents at noon on Wednesday. -- ST PHOTO: MARK CHEONG
A Shell petrol kiosk on Feb 24, 2015. The oil giant reduced its petrol pump prices by 2 cents at noon on Wednesday. -- ST PHOTO: MARK CHEONG

SINGAPORE - Oil giant Shell reduced its petrol pump prices by 2 cents at noon on Wednesday.

On Tuesday, consumer watchdog Consumers Association of Singapore (Case) said that oil companies were "profiteering" from the recent Government petrol duty hike.

Shell's 95-octane grade now costs $2.02 a litre before discount, while its 98-octane grade is priced at $2.26 per litre. The company's premium V-Power costs $2.63 a litre.

While this is 2 cents lower than yesterday, prices are still higher than the Government's announced duty hike of 15 cents a litre for intermediate grade petrol and 20 cents a litre for premium petrol.

Shell's pump prices before the Government announcement were $1.86 a litre for its 95-octane grade and $2.03 for its 98-octane grade, and $2.40 for V-Power.

Case has sent letters to the main players here asking each of them to justify the increases.

"Prices were increased beyond the tax increment without proper justification," said Case's executive director Seah Seng Choon, adding that the association has received queries from concerned motorists.

If the replies are "not satisfactory", Case will file a complaint with the Ministry of Trade and Industry for the firms to be asked to reduce their prices, he said.

adrianl@sph.com.sg