The new month of July has brought higher prices at the petrol bowser for consumers including motorists, the Ministry of Finance has confirmed.

In a public release on Thursday, the caretaker Minister of Finance, Sili Epa Tuioti announced the changes to the petrol prices effective July 1, 2021.

Kerosene underwent the highest increase of 9.94 sene per litre, moving from $2.10 to $2.20.

Diesel also increased by 8.12 sene per litre, bringing up its per litre price from $2.48 to $2.56.

Meanwhile, the retail price of regular petrol increased only marginally and by 4.77 sene per litre, moving from $2.63 to $2.68.

“The market prices for July 2021 are based on [the] May [calculation for the average price of fuel commodities in Singapore],” the release reads.

“Crude and Product prices are continuing to increase as the world economy recovers from the [worst] impacts of the COVID 19 pandemic."

Last month, retail prices for diesel and kerosene decreased while there was no change for the petrol retail price.

According to Samoa Max Wholesale. July's prices are the highest petroleum has been prices since prices mid-way through last year. 

Last year in July, prices were at their lowest in decades, with petrol reaching as low $1.98 per litre, diesel at $1.97 per litre and kerosene $1.52 per litre, at the peak of the global pandemic-led downturn. 

The World Bank reported in May that crude oil prices have recovered from their COVID-19 slump, driven by firming demand and continued production restraint by the Organisation of the Petroleum Exporting Countries (O.P.E.C.) and its partners. 

And as demand is expected to return to pre-pandemic levels, the world's fossil fuel producers are expected to raise production, which in turn is expected to drive up prices.

“Crude oil consumption continues to slowly increase after plunging 9 [per cent] in 2020,” the report notes.

“Gasoline and diesel have mostly returned to pre-pandemic levels, but jet fuel consumption remains considerably lower as air travel has been slower to recover.”

The report further noted that the positive oil forecast depends on the COVID-19 pandemic containment.

“Oil demand growth estimates have been revised upward recently, reflecting the improved economic outlook and policy support measures,” the World Bank report notes.

“But the expected recovery in demand depends on the pandemic being successfully contained.

“Renewed outbreaks and lockdowns could extend the weakness in oil demand and lead to lower oil prices.”