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Singapore: Government watching pump prices, ensuring petrol companies not profiteering: Tan See Leng
SINGAPORE’S antitrust authorities are keeping a close watch to ensure petrol companies do not profiteer from the recent surge in crude oil prices that has occurred after war broke out in Ukraine, said Second Minister for Trade and Industry Tan See Leng on Thursday (Mar 10).
Responding to a parliamentary question from Sembawang GRC MP Lim Wee Kiak, Dr Tan said while pump prices are set by the market, the Competition and Consumer Commission of Singapore (CCCS) keeps a close watch to ensure an open and competitive market.
“If there is evidence of anti-competitive behaviour, such as coordinated price increases, CCCS will investigate and take firm enforcement action under the Competition Act,” he said, adding that well-informed consumers are also a “key deterrent” against unreasonable pricing.
He noted that petrol price tracker Fuel Kaki, developed by the Consumers Association of Singapore, allows consumers to compare effective pump prices across retailers, taking into account various discounts and rebates.
Crude oil prices, already on the climb in recent weeks, crossed the US$100 mark after Russia invaded Ukraine on Feb 24.
Brent hit a high of US$139.13 per barrel early this week, the highest in nearly 14 years, as the crisis deepened.
As of Wednesday, all petrol grades in Singapore are now at least S$3 per litre, according to Fuel Kaki.
The increase in petrol and diesel prices reflect the rise in the price of crude oil over the past months, said Dr Tan, noting that retailers here had been adjusting their prices periodically since the start of the year.
In a separate reply to Ang Mo Kio GRC MP Darryl David, Dr Tan maintained that the conflict in Ukraine poses limited direct risks to Singapore’s energy supplies as the Republic’s energy sources are diversified. Currently, 95 per cent of Singapore’s energy needs are generated from liquefied natural gas.
“Nevertheless, as Singapore is heavily reliant on the global market for our energy supplies, we will be affected by the high and volatile global gas prices resulting from the conflict,” he said.
“Electricity prices are likely to remain elevated, or increase even further, in tandem with escalating global energy costs,” he added.
David had asked if the government has plans to help small and medium enterprises which may be adversely affected by the higher fuel and energy costs.
Dr Tan said businesses are understandably concerned about higher costs but added that the government has a suite of measures to safeguard Singapore’s energy security and to help firms cope with higher costs.
This includes the small business recovery grant as well as temporary bridging loan programmes. The Temporary Retail Electricity Contracting Support scheme may also be extended beyond May if needed.
“I would like to assure this House that the government is monitoring the situation closely and is prepared to put in place further measures to safeguard our energy security, and assist affected businesses, should there be a need to,” Dr Tan said.
This also applies to taxi and private-hire drivers, although current measures appear to have some impact in supporting them as well, Dr Tan said in response to a question from Leader of the Opposition and Aljunied GRC MP Pritam Singh from the Workers’ Party.
Singh had asked if the government is looking at a possible support package for these drivers to alleviate the cost of work for them.
Source: https://www.businesstimes.com.sg/government-economy/government-watching-pump-prices-ensuring-petrol-companies-not-profiteering-tan