Petrol pump prices up after US killing of Iranian commander, Latest Singapore News - The New Paper

Petrol pump prices up after US killing of Iranian commander

This article is more than 12 months old

Petrol pump prices have risen by three cents a litre at most retailers in Singapore, in the latest fallout on oil markets from the assassination of Iranian military leader Qassem Soleimani by US forces last week.

A litre of petrol at major fuel retailers here costs $2.34 for 92-octane grade, $2.38 for 95-octane and $2.77 for 98. Diesel is $1.99 a litre.

Caltex's 98 with Techron is $2.80, while Shell's V-Power is close to $3 at $2.94. All prices are before discounts.

Shell raised its prices on Monday and Caltex did so yesterday. Esso has also adjusted its prices.

SPC was the only major player to maintain its prices as of yesterday afternoon.

Observers said while the killing of Major-General Soleimani has made the market more volatile, crude prices had been climbing before his death.

Fuelled by a thaw in the US-China trade war and supply cuts from major oil producers, Brent crude ended last year at a four-month high of US$66 (S$90) a barrel. It has since risen further, ending at US$68.91 on Monday.

The volatility is also attributable to uncertainty over Iran's response to the killing. Many of its leaders warned of reprisals.

Singapore oil industry consultant Ong Eng Tong reckoned oil prices will rise as Iran is likely to retaliate, igniting US sanctions, which will drive prices higher.

The last time pump prices went up was just before Christmas, when rates rose by three cents a litre. Compared with 18 months ago, pump prices have climbed seven cents. - THE STRAITS TIMES