Petrol pump prices have increased by three cents a litre in the latest dispute from the assassination of Iranian military leader Qassem Soleimani by United States forces last week.
The feared Iranian general was killed in a US air strike in Baghdad. General Soleimani, a veteran of the Iran-Iraq was highly celebrated in Iran for helping to defeat the Islamic State in Iraq and Syria (ISIS) and countering US influence.
A litre of petrol at major fuel retailers now costs S$2.34 for 92-octane grade, S$2.38 for 95-octane and S$2.77 for 98 octane-grade. Diesel costs S$1.99 a litre.
Shell’s V-Power is now S$2.94, according to their website meanwhile Caltex’s 98 with Techron is S$2.80 in their website. All prices are before discounts.
| Caltex | Esso | Shell | SPC | Sinopec | |
| 92-Octane | $2.34 | $2.34 | – | $2.31 | – |
| 95-Octane | $2.38 | $2.38 | $2.38 | $2.35 | $2.35 |
| 98-Octane | $2.80 | $2.75 | $2.77 | $2.72 | $2.72 |
| 98-Octane (V-Power) | – | – | $2.94 | – | $2.84 |
| Diesel | $1.99 | $1.98 | $1.99 | $1.95 | $1.96 |
Chart retrieved from Motorist Sg website (https://www.motorist.sg/article/507/petrol-price-singapore-2020).
Shell raised its prices on Monday (6 Jan) while Caltex raised its on the following day.
Singapore Petroleum Company (SPC) was the only major retailer to resist the latest hike, to which the prices remain unchanged as of Tuesday (7 Jan).
The feud between US and Iranian forces in the world’s most important oil-producing region is likely to have longer lasting consequences for the global economy. Iraq is the second-largest producer in the Organisation of Petroleum Exporting Countries as of December 2019, pumping 4.65 million barrels a day.
While the killing of General Soleimani had made the market more volatile but observers said that crude prices had already been increasing even before his death.
Iran has repeatedly threatened to shut down the Persian Gulf through Strait of Hormuz, a narrow waterway if there’s a war. The waterway is used for exports of Saudi Arabia, Iran and Kuwait. The three neighbours combined produce about 15 million barrels of oil per day.
Brent crude ended 2019 at a four-month high of US$66 a barrel due to the ongoing supply cuts from major oil producers and thaw in the US-China trade war.
Iran’s Supreme Leader Ayatollah Ali Khamenei has warned that a “hard retaliation is waiting” for the US after the air strike, meanwhile US President Donald Trump tweeted the image of an American flag with no immediate comment on Twitter.
This has left #WWIII trending on Twitter for a several days.
Oil industry consultant Ong Eng Tong believes oil prices will rise as Iran is most likely to retaliate which would ignite US sanction leaving oil prices to drive higher.
The last hike in pump prices was just before Christmas, when rates moved up by three cents a litre. Pump prices have climbed seven cents compared with 18 months ago.
