Singapore petrol prices have hit a new record, with Caltex raising the price of 95-octane petrol to $3.45 per litre on March 13, surpassing the previous high of $3.42 set in June 2022, according to data from the Consumers Association of Singapore’s Price Kaki tracker.
The increase follows a period of steady rises linked to the ongoing conflict in Iran, which has effectively disrupted a vital waterway for oil supplies. The previous peak price was established after the European Union imposed a ban on Russian oil following the invasion of Ukraine.
The latest adjustment by Caltex represents a 57-cent, or nearly 20 percent, increase compared to the price on February 28, the day the United States and Israel launched attacks on Iran. This translates to an additional $28.50 to fill a 50-litre fuel tank, excluding any available discounts.
Other petrol stations have also been increasing prices, sometimes multiple times daily, in response to fluctuations in global crude oil prices. Caltex previously made the largest single increase since the start of the Middle East conflict, raising prices by 20 cents on March 10. Shell and Esso currently price 95-octane at $3.40 per litre, while SPC offers the lowest price at $3.30 per litre.
Prices for 92-octane petrol, 98-octane petrol and premium 98-octane petrol have also exceeded levels seen during the Ukraine war. Diesel prices are also elevated, surpassing the March 2022 peak of $3.19 per litre, coinciding with the intensification of Russia’s invasion of Ukraine.
Singapore relies entirely on imported crude oil, with the majority sourced from the Middle East. The Strait of Hormuz, a critical chokepoint for oil and gas shipments from the Middle East to Europe and Asia, has been effectively closed due to the conflict, though the exact impact on Singapore’s crude oil supply remains unclear.
Petrol prices in Singapore are determined daily, with retailers considering the Imply of Platts Singapore (MOPS) average of daily price assessments published by S&P Global Platts. Analysts note that these assessments have been volatile and trending upwards throughout the week of March 2.
Crude oil prices, which have risen since the start of the war in Iran, are a significant factor influencing pump prices. Caltex states that the cost of crude oil accounts for almost 50 percent of the retail price of petroleum. The company also acknowledges that political instability in oil-producing regions historically impacts crude oil prices, and the current situation in the Middle East is a global concern.
According to a Western intelligence official, Russia is providing Iran with advanced drone tactics gleaned from its war in Ukraine, potentially enhancing Iran’s ability to target U.S. And Gulf nation assets. This assistance includes strategies for deploying Shahed drones in waves, utilizing multiple drones with changing courses to evade air defenses. Ukrainian President Volodymyr Zelenskyy stated on Wednesday that Russia is supporting Iran with drones and may also provide assistance with missiles and air defense, though he did not provide specific details.
The Politico report indicates that the war in Iran is diverting U.S. Air defense munitions needed by Ukraine, potentially jeopardizing future deliveries and Kyiv’s ability to counter Russian ballistic missiles. The FPRI article suggests that the conflict in Iran has shifted global attention away from Ukraine, but the implications for Ukraine are significant, particularly regarding the availability of critical air defenses.
