By Alvin Chow
Crude Oil Prices in 2015, declined from US$54 to US$35 per barrel. Chart from tradingeconomics.com
This is the price trend of SPC petrol prices in 2015. My pump price has actually increased from S$1.87 to S$1.96! Screenshot of chenlim.com, visit the site for price data of other companies.
Oil prices declined 35% while my pump price increased 5%!
Okay, to be fair, Jan 2015 was a 6-year low for pump price based on this report. But then again, the crude oil prices have dropped so much and the current pump prices aren’t convincing. Consumers did not seem to enjoy the cheaper crude oil prices.
Breaking Down the Costs
Let’s use RON95 grade since I pump that, which works out to be S$1.98/litre at Esso.
According to Exxonmobil, the costs could be broken down into the following 5 factors.
1) Internationally-traded wholesale fuel prices
We have established that the wholesale fuel prices have declined 35%.
One barrel of crude oil is equivalent to 159 litres. Hence, one litre of crude oil on 1 Jan 2015 would be US$54/159 = US$0.34, and it would have cost US$0.21 on 22 Dec 2015.
2) Excise duties and GST
“The petrol excise duty in Singapore is set at a rate of $0.56 per …read more