Petrol prices drop in May, due to COVID-19

Petrol prices will be cheap in May with the coronavirus (COVID-19) global pandemic resulting in the fuel price dropping by 36 sene.

The new price will go into effect on Friday, May 1, 2020 with the Minister of Finance, Sili Epa Tuioti, announced the new retail petroleum prices on Thursday afternoon.

Petrol will drop from $2.55 sene to $2.19 sene per litre, a 36 sene decrease. 

Diesel will decrease by 21 sene, from $2.52 sene to $2.31 per litre while Kerosene drops by 29 sene, from $2.13 sene to $1.84 sene per litre.

"Singapore Product Price MOPS decreases in March (which set May price) resulted from the continuing impact of the COVID-19 pandemic," a statement issued by the Ministry of Finance said.

The drop was expected as the cost of petrol after the global market for oil experienced a sharp price fall due to the global economic downturn brought on by the virus.

As most parts of the world remain on lockdown as part of preventative measures against COVID-19, demand for oil continues to plunge. 

And since monthly prices are set by prices two months prior, motorists can expect petrol prices to remain low as cost plunges are driven by the world running out of storage facilities for oil being produced by the industry. This comes despite a deal by Saudi Arabia, Russia and other oil producing nations to cut down on production.

The broader wholesale price in Samoa has been decreasing since February.

The coronavirus' impact on the global oil market prices are predicted to be worse even than the 2008 global financial crisis which also recorded a massive plunge in demand and prices. 

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