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Why Petrol Prices Remain Stable Despite Crude Oil Price Declines

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Following up on the last article on petrol prices, lets us look at the direct impact of almost 30% tax (Excise Tax+ GST imposed) on high cost of doing business/ transportation cost thus resulting in high inflation in Singapore.

As claimed by Exxon Mobil, almost 30% of petrol retail price in SIN goes to the govt (Excise Tax+ GST), lets prove what Exxon Mobil say is true -

$0.56/$1.78 x 100% = 31.4 % goes to PAP coffers.

While Malaysia can can pay RM $2.11 (Which includes land + Sales Marketing + distribution cost + refinery cost) – approx SGD $0.80 for their petrol, without tax and subsidies, we Singapore pay close to $1.95 for our petrol, out of which our dear Singapore govt taxes us twice, once – $0.44 and another $0.12 giving a total of $0.56 going to taxes for petrol.

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Assume that there is no/ less excise tax imposed -

$1.78 – $0.56 = SGD $1.22

Even at SGD $1.22, we are overpaying for petrol, all except Laos had a higher petrol price in Asean. Are the excise tax reasonable, where other countries charged reasonably or lower/ no tax and to the extent subsidies for petrol, here we are paying an excise tax of close to 41/44 cents which does not fluctuate in tandem with the global markets. No wonder the whites can claim to make so much money per year without ‘even considering the global market conditions???’

What do you think??

 

lost faith in the whites

 


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