Petrol prices drop, diesel cost increases

February has brought some mixed news for consumers at the petrol bowser with a drop in the cost of regularly petrol but an increase in diesel.

The Minister of Finance, Sili Epa Tuioti advised that the changes to retail petroleum products retail start on Saturday

The retail price for petrol has been decreased by 2.07 sene as it moves from $2.74 to $2.72 sene per litre. 

But diesel fuel has been increased by 4.16 sene, from $2.74 to $2.78 sene per litre. The kerosene retail price has increased by 4.79 sene, from $2.37 to $2.42 sene per litre.

"[Singapore average price] movements in December (which set February prices) were varied with petrol prices decreasing while diesel and kerosene prices increased," the statement reads.

"The Tala strengthened against the US dollar which eased the impact of the higher MOPS.

"A relatively stable political climate and economic outlook combined to slow downward and upward pressures on crude oil market; the result minor movements in both crude and refined product prices."

The price changes comes a week after the announcement of a two sene tax to be levied on petroleum prices was raised in Parliament.

Vaimauga Sasa’e's M.P., Sulamanaia Tauiliili Tuivasa, said the two sene levy on consumers for vehicles came on top of prices that were already expensive. 

The two sene levy is contained in the Supplementary Budget for the Financial Year 2019-2020 and will be levied on diesel and kerosene. 

The Government anticipates to collect $1.1 million from the two sene “fair tax” which, it says, will be used to fund public road infrastructure, the Chief Executive Officer of Ministry of Finance, Leasiosio Oscar Malielegaoi, explained. 

Minister Sili, in his speech on the supplementary budget, stated the plans to introduce a fuel levy of 2 sene per litre in January 2020 "will be used to assist in the maintenance and building the resilience of roads, drainages, footpaths and walkways for the country.”

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