Worrying knock-on effects from high pump prices

I agree with Mr Edmund Khoo Kim Hock that pump prices do not reflect competition in the industry and at worst, they contribute to inflation and increased cost of business (Pump prices don't reflect competition in industry; Nov 27).

It is rather surprising as the price of Nymex WTI crude dropped from about US$80 per barrel a few months ago to about US$50 last month, but local pump prices during the same period stayed without any significant downward adjustment.

High pump prices, if not appropriately pegged to the prevailing market, translate into unrealistic transportation costs for trucks delivering ingredients or supplies to hawker centres and wet markets, school buses ferrying students, vehicles ferrying workers and deliveries for household goods, and so on.

This has a compounding effect on the overall cost of living for those who do not own a car.

It will eventually erode the nation's competitiveness as a major logistics and distribution hub, especially if we include the impact of high land cost and the strong Singapore dollar.

Sum Kam Weng

A version of this article appeared in the print edition of The Straits Times on December 18, 2018, with the headline 'Worrying knock-on effects from high pump prices'. Print Edition | Subscribe