Why Singapore’s fuel supply holds steady but not prices, and when cost pressures may ease

Jet fuel may follow as airlines cut flights and travellers scale back discretionary travel. Diesel, however, is likely to remain under pressure. Its wide use across industries means demand is hard to cut even when prices rise.

Against that backdrop, the government’s approach is unlikely to shift towards broad-based fuel subsidies.

“Those who drive bigger vehicles or … drive more would benefit more (from such subsidies),” Gan said. “That may not necessarily be the fairest way of distributing the government resources.”

The focus is on “targeted support” instead. “We’ve been in close touch with companies and the various groups that are affected,” she said, noting that there have been a few requests and suggestions. “We’re ready to do more.”

While acknowledging the strain on school bus owners, private-hire drivers and other platform workers, she emphasised the importance of cost-sharing. “Consumers also, I think, have a part to play in bearing the price increase,” she added.

What the government also wants is healthy competition among retailers so that petrol prices, for instance, are reflective of demand and supply.

“The Competition and Consumer Commission of Singapore does regular surveillance of these companies to make sure that there’s no anti-competitive behaviour,” she highlighted.

Watch this episode of Talking Point here. The programme airs on Channel 5 every Thursday at 9.30pm.