Petrol pump prices fall to lowest level since Jan amid deepening fear of global recession
Petrol prices are continuing their downward trend, falling by six cents across all brands – except Caltex – to settle at close to their lowest levels since January.
While the price of diesel has also fallen by eight cents a litre, it has remained relatively firm when compared with rates seen earlier this year.
Four out of five mainstream operators here have reduced pump prices since last week, with the latest round of cuts posted on Dec 13 being the biggest in recent memory.
As at Wednesday afternoon, Caltex remained the only one to not have budged.
The price cuts came on the back of softer oil and wholesale prices.
The benchmark Brent crude fell to US$76.10 a barrel last week – its lowest since mid-2020 – before recovering to US$80.35 in early trade on Wednesday. The raw material was more than US$120 a barrel in March.
According to a CNBC report last week, a deeper-than-expected global recession, including a delayed Chinese recovery on the back of an unexpected surge in Covid-19 cases, could lead to a significant collapse in oil demand.
Likewise, RBOB Gasoline, a proxy for wholesale petrol, hit US$2.16 a gallon in early trade on Wednesday, one of its lowest levels since June.
Diesel, however, has remained relatively buoyant because of lower stockpiles and winter in the Northern Hemisphere.
With the pump price cuts in Singapore, diesel is now between $2.61 (Sinopec) and $2.70 a litre (Caltex), while 92-octane petrol is $2.63 at Esso and SPC, and $2.69 at Caltex.
The popular 95-octane petrol is between $2.67 at SPC and $2.74 a litre at Caltex, while 98-octane is $3.15 at Esso, Sinopec and SPC, and $3.17 at Shell. The so-called premium 98-octane grade is between $3.28 (Sinopec) and $3.40 (Caltex).
After discounts, the cheapest 92-octane fuel is $2.16 a litre at Esso (DBS Esso card), while the cheapest 95-octane is $2.10 a litre at Sinopec (OCBC cards).
The drop in pump prices is not isolated to Singapore. The New York Times reported last week that petrol prices in the US were at their lowest in just over a year.
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