SINGAPORE – Even as the Government works towards cushioning Singaporeans from the impact of war in the Middle East, it will not reduce fuel or diesel duties across the board.
Doing so, said Acting Minister for Transport Jeffrey Siow, “is too blunt an approach, and it could also be regressive”.
Speaking in Parliament on April 7, Mr Siow, who is also Senior Minister of State for Finance, added: “At the same time, we want to preserve the price signals for consumers to use energy more efficiently.”
He said that as an open economy, Singapore must allow fuel prices to reflect market realities. “If prices are artificially suppressed, importers may choose to divert fuel to where prices are higher, and over time, this can tighten supply and leave us worse off.”
He said the Government’s “targeted approach” provides support for those who are directly impacted, and this allows help to be channelled to those who need it most.
Mr Siow had earlier announced a one-off $200 cash disbursement to active platform workers, private-hire car drivers and taxi drivers from the end of April, as well as temporary government assistance to co-fund cost increases for some essential bus services.
Several MPs had filed questions on fuel prices, including Mr Louis Chua (Sengkang GRC), who asked if the Government is considering temporary or permanent diesel and petrol pump price adjustment mechanisms to mitigate the impact of pump prices on consumers and businesses.
