Singapore Petrol Prices Surge: A Ripple Effect of Global Tensions
Singaporean motorists are facing higher prices at the pump, with petrol prices exceeding record highs previously set during the 2022 Ukraine crisis. This increase is directly linked to rising global oil prices, exacerbated by ongoing conflicts, particularly those involving the United States, Israel, and Iran.
Caltex Leads the Price Hike
On March 13, 2026, Caltex raised the price of 95-octane petrol by 10 cents to US$3.45 (approximately S$58.305 based on an exchange rate of S$16.900 per US dollar) per liter. This surpasses the previous peak of US$3.42 per liter recorded at both Shell and Caltex in June 2022. Other petrol stations, including Shell, Esso, and Sinopec, are currently selling 95-octane at US$3.40 (S$57.460) per liter, although SPC (Singapore Petroleum Company) offers the lowest price at US$3.39 (S$57.291) per liter.
Impact on Taxi Drivers and Ride-Hailing Services
The rising fuel costs are significantly impacting Singapore’s transportation sector. One taxi driver, who wished to remain anonymous, expressed concern about the effect on earnings. “It would be exceptionally helpful if there was assistance to reduce taxi rental costs since petrol is one of our biggest daily expenses. After deducting petrol and daily rental, income becomes quite difficult. Some days we just try to cover rental and fuel costs,” they stated.
Support Measures for Drivers
ComfortDelGro (CDG), Singapore’s largest taxi operator, is offering petrol at US$1.93 per liter, a price that increased from US$2.31 per liter on March 11, 2026. This significantly lower price is intended to benefit both taxi drivers and private-hire vehicle drivers. Strides Premier, the second-largest taxi operator, is similarly providing fuel at rates below those of most retail petrol stations, supplementing existing assistance programs that offer fuel credits to drivers.
Khoo Gui Ju, General Manager of Vehicle Rental Business, explained, “These measures aim to alleviate operating costs and support the livelihoods of our driver partners. We will continue to monitor fuel price movements closely and assess whether additional measures can be introduced to further support our driver partners if needed.”
Future Trends and Global Factors
The current price surge highlights Singapore’s vulnerability to global geopolitical events and fluctuations in the oil market. Several factors are likely to influence future petrol prices:
Geopolitical Instability
Continued conflicts and tensions in key oil-producing regions, such as the Middle East, will likely maintain upward pressure on oil prices. The involvement of major global powers, like the US and Israel, in these conflicts adds to the uncertainty.
OPEC+ Production Policies
Decisions made by OPEC+ (Organization of the Petroleum Exporting Countries and its allies) regarding oil production levels will have a significant impact. Production cuts can drive up prices, while increased production can help stabilize or lower them.
Global Economic Growth
Strong global economic growth typically leads to increased demand for oil, pushing prices higher. Conversely, economic slowdowns can reduce demand and potentially lower prices.
Shift Towards Renewable Energy
While the transition to renewable energy sources is underway, it is a gradual process. The pace of this transition will influence the long-term demand for oil and, its price.
FAQ
Q: Why are petrol prices rising in Singapore?
A: Petrol prices are rising due to increased global oil prices, driven by geopolitical tensions, particularly conflicts involving the US, Israel, and Iran.
Q: What is ComfortDelGro doing to help taxi drivers?
A: ComfortDelGro is offering petrol at a significantly reduced price of US$1.93 per liter to help offset the rising fuel costs for its drivers.
Q: Will petrol prices continue to increase?
A: It is difficult to predict with certainty, but ongoing geopolitical instability and potential OPEC+ production policies suggest that prices may remain elevated in the near future.
Q: Where can I find the cheapest petrol in Singapore?
A: Currently, SPC (Singapore Petroleum Company) offers the lowest price for 95-octane petrol at US$3.39 per liter.
Did you know? Singapore imports almost all of its oil, making it highly susceptible to fluctuations in the global oil market.
Pro Tip: Consider using fuel-efficient driving techniques and regularly maintaining your vehicle to maximize fuel economy and reduce your petrol expenses.
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