Pump prices up by 10¢ a
litre
15% rise in wholesale prices leads to all-time highs, say oil
giants
By Christopher Tan
PETROL and diesel prices at the pumps soared to all-time highs
yesterday, with oil giants Shell and ExxonMobil raising rates by 10
cents a litre - the single biggest rise in recent times.
With the hike - which remaining players Caltex and Singapore
Petroleum Co are likely to follow - diesel has reached $1.37 a
litre before discount. This record high is almost double the price
in 2004.
For petrol, 92-octane is now $1.802 a litre before discount at
Shell and ExxonMobil stations, which account for two-thirds of the
network here. The 95-octane grade is $1.834 a litre and 98-octane
is $1.917 a litre - one cent off last August's record, when prices
were whipped up by Hurricane Katrina.
But Shell's ultra-premium grade V-Power is now $2.03 a litre - four
cents higher than its previous record of $1.99 during the
Katrina-induced oil shortage.
A 10-cent increase in pump prices translates to $1.25 million more
a day for Singapore's motoring and transportation expenses, based
on daily pump sales of 12.5 million litres.
Shell and ExxonMobil said they had no choice, as wholesale prices
had risen by up to 15 per cent in the last three weeks.
'The US-Iran tension and the start of the summer driving season in
America are putting pressure on crude oil prices,' a Shell
executive said. 'We don't see it easing.'
Oil industry consultant Ong Eng Tong disagreed. He said current
high wholesale prices were also partly a result of several
refineries halting production to undertake maintenance. These
refineries usually 'come back on line' in May, he said.
Cold comfort to consumers now, especially taxi drivers.
'There's really nothing we can do,' said 58-year-old cabby Daniel
Chung, who spends about $600 a month on fuel.
'Even if it goes up by $1, we still need to use it. The question
now is how many of us can survive.'
Cab companies currently have no plans for any new relief measures
beyond the discounted diesel they sell to their drivers.
Another taxi driver, Mr Tony Lim, 56, said: 'The authorities should
really consider allowing us to apply fuel surcharge, just like the
airlines. My monthly income has fallen by $500 from two years
ago.'
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