Union Gas jumps to 2-year high as queues at its Cnergy petrol stations grow longer

SINGAPORE - Shares of Union Gas, which is listed on the Singapore Exchange, rose to a two-year high of 50 cents on March 20, as queues at the company’s Cnergy petrol stations in Singapore persisted for another day.

The shares rose 40 per cent over the past week as drivers caught wind of Cnergy’s lower petrol and diesel prices, even as rival providers raised theirs in tandem with rising oil prices.

Union Gas owns and operates three Cnergy petrol and diesel stations in Queensway, Dunman Road and Old Toh Tuck Road, where the price of 95-octane fuel for members was $2.40 per litre, and $2.46 per litre for non-members on March 20.

This is cheaper than what drivers pay for 95-octane at Caltex, Esso, Shell, SPC and Sinopec, which are now charging between $2.70 and $2.75 per litre after various discounts. Before the discounts, drivers pay between $3.46 and $3.47 per litre for 95-octane.

The company, which mainly distributes liquefied petroleum gas used for cooking, derives around 22 per cent of its revenue from the commercial sale and distribution of petrol and diesel.

Union Gas chief executive Teo Hark Piang told The Straits Times that the company buys diesel and imported natural gas for its Cnergy fuel stations. He noted that prices have risen “significantly” since the war in Iran started on Feb 28, and that Cnergy has had to raise its pump prices four times since then.

He said the company accepts a smaller profit margin to keep Cnergy’s prices lower than those at other fuel station operators, but stops short of doing so at a loss. Cnergy’s biggest costs, mainly fuel and land, are also more manageable than the others’.

Mr Teo added that petrol prices at Cnergy can be expected to come back down after the war ends, but noted that it is anyone’s guess how long that might be. Until then, pump prices are likely to keep rising – by as much as needed to remain profitable.

He said the company has kept pump prices competitive when oil prices turned volatile in the past, such as during the Russia-Ukraine war in 2022.

“As a home-grown company that has been providing fuel products for 50 years, we have many loyal customers who have been with us through ups and downs. 

“That is why we do our best to support them when times are challenging. It is our way of helping them cope with rising fuel costs. We are not here to treat them like an ATM.”

For the latest financial year ended Dec 31, 2025, Union Gas reported record revenues totalling $137.9 million across its businesses, up almost 10 per cent year on year.

This was driven by a 93 per cent jump in fuel station revenue to $30.3 million, supported by higher sales volumes and contributions from the Dunman Road station, which opened during the year.

However, the company’s costs grew at a faster rate, widening by 14.7 per cent year on year to $89.6 million for the full year. Notably, the fuel stations business incurred an overall loss of $1 million despite strong revenues.

This implies that Union Gas did not fully pass on higher costs to consumers in 2025, which was before the Iran war, said Mr Alvin Chow, co-founder of investor education platform Dr Wealth, in a March 19 note.