The truth behind why oil prices always remain high in Singapore
“Taxes and duties make up about 30 percent of pump prices. The petrol excise duty in Singapore is set at a rate of $0.41 per litre for 92- and 95-octane petrol, and $0.44 per litre for petrol rated 97 octane and above. As with all other products, there is the additional seven per cent GST charge.” – Extracted from exxonmobil.com.sg
Why do oil prices remain high despite global oil prices dropping to US$50 per barrel?
Simple calculation:-
1 barrel = 119 litre
1 barrel = US$50
US$ 50/ 119 litre = US$0.42 per litre
US$0.42 x 1.3 (Exchange rate) = $0.546 per litre
Under current taxes imposed by our dear govt.
Fixed petrol excise duty (per litre) = $0.41
Fixed petrol cost = $0.54 + $0.41 = $0.95 per litre
Other costs = High land cost over 30 years + Other so-called sales, marketing and distribution costs
Lastly additional GST 7% on top of all costs…
$1.95 (Assume today’s petrol cost) – $0.95 = $1.00 goes to (???, sales, marketing distribution costs + others hidden costs)
No wonder the petrol cost does not go down in tandem with the actual world oil prices. With our so-called political and taxation policies, we will never be able to gain anything out of the global economy, only the govt and the big businesses and petrol players stand to benefit while we citizens are the losers…
Citizens, please do spread the truth and allow everyone to see the working mechanisms behind the high oil prices in Singapore.
Do kick the repressive regime OUT by 2016 else we continue to suffer from high inflation and paying excise duties and GST!!!
Lost Faith in the Whites