Ensuring that Recent Increase in Petrol Prices Is Not Profiteering
Ministry of Trade and IndustrySpeakers
Summary
This question concerns whether the recent increase in petrol prices constitutes profiteering and why prices rose immediately after the war in Ukraine broke out. Second Minister for Trade and Industry Dr Tan See Leng explained that domestic price hikes reflect rising global crude oil costs and that the Competition and Consumer Commission of Singapore monitors for anti-competitive behavior. The Minister highlighted the Fuel Kaki website as a tool for consumers to compare effective petrol prices and rebates across various retail outlets. In response to Leader of the Opposition Mr Pritam Singh regarding support for transport workers, the Minister stated the government is monitoring price volatility and oil futures. While current support measures are providing relief, the Second Minister for Trade and Industry emphasized that the government will roll out additional packages if the situation necessitates further action.
Transcript
The following question stood in the name of Dr Lim Wee Kiak –
5 To ask the Minister for Trade and Industry (a) what is the Ministry doing to ensure that increases in petrol prices are not profiteering; and (b) whether oil companies can claim a rise in crude oil prices as the basis for raising petrol prices just one day after the war broke out in Ukraine on 24 February 2022.
Ms Denise Phua Lay Peng (Jalan Besar): Question No 5.
The Second Minister for Trade and Industry (Dr Tan See Leng) (for the Minister for Trade and Industry): Since the start of the year, global oil prices and domestic pump prices have been rising as a result of the Russia-Ukraine tension and retailers here have been adjusting their pump prices periodically. Soon after the war broke out, three retailers raised pump prices further on 24 to 25 February, while the remaining two retailers did not adjust prices. Overall, the increase in petrol and diesel prices reflect the rise in the price of crude oil over the past months.
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.
Well-informed consumers are also a key deterrent against unreasonable pricing. Fuel Kaki, a retail petrol price comparison website, which is developed by the Consumers Association of Singapore (CASE), empowers consumers to compare not just the retail pump prices, but also the effective price of petrol across retailers, based on the various discounts and rebates applicable to them.
The Government will continue to monitor price movements in the retail petrol industry.
Mdm Deputy Speaker: Leader of the Opposition.
Mr Pritam Singh (Aljunied): Thank you, Deputy Speaker. Just one question for the Minister for Manpower. In view of the steep rise in the price of petrol and diesel, is the Government looking at the prospect of a support package for private hire drivers, taxi drivers, private hire bus drivers, not too dissimilar from the aviation support package announced at this year's Budget to alleviate the cost of work for them?
Dr Tan See Leng: I thank the Leader of the Opposition for his question. We are watching the situation very closely. Even as we speak, I think that there are a lot of developments today and volatility in terms of the pricing, looking also at the oil futures. These are all the various factors we take into consideration.
At this particular point in time, we think that the current slew of measures, the support packages and so on, appear to be having some impact in supporting them. As I have said in my previous Committee of Supply speech, we will not hesitate to roll out more. But at this particular point in time, we need to monitor the situation very, very closely.