<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>SLEEPING?
Lowering fuel prices: Where's Case?
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I WAS surprised that the Consumers Association of Singapore (Case) did not lobby to reduce petrol pump prices, despite the 45 per cent drop in crude oil price from US$147 (S$199) per barrel in mid July this year to US$80 (S$118) per barrel last Friday.
Major oil companies have made record profits from consumers and now benefit even more with the delay in lowering pump prices.
Current pump prices have dropped only about 23 per cent since mid July, which means oil companies can further lower current pump prices by another 22 per cent.
This suggests that current popular grades such as 98, 95 and 92 unleaded petrol, at $1.97, $1.896 and $1.863 per litre respectively, can be lowered to $1.537, $1.479 and $1.453 per litre. There is still much room to reduce prices.
Oil companies will find reasons not to lower pump prices with explanations like:
Petrol prices did not drop as much as crude price did;
The refining margin is not fantastic; and
Logistics and labour costs have risen.
I look forward to oil companies lowering their pump prices further. At the same time, they can support community and social projects by sponsoring needy families with public transport and utility vouchers, which constitute a significant portion of monthly expenses.
David Goh
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'Why have we not heard that this 'fuel subsidy' will be removed soon?'
MS THAM SAU LENG: 'With the oil prices now hitting new lows of US$80 per barrel, which is the same as the price of oil last October, I would like to ask taxi and school bus transport operators when they will remove the additional fuel surcharge they imposed when oil prices were much higher. The fuel subsidy imposed by the school bus transport operators was especially significant as it was about 10 per cent on top of the original fares. With the savings they are now getting from the reduction of pump prices, why have we not heard that this 'fuel subsidy' will be removed soon?'
'Is it still necessary to impose a 35 per cent surcharge on taxi fares during peak hours?' MR SADON ANWAR: 'Now we are going through a recession and the price of oil has dropped drastically from its peak, is it still necessary for the Land Transport Authority (LTA) to impose a 35 per cent surcharge on taxi fares during peak hours? Will the LTA also consider reducing ERP charges on its gantries? The LTA has often said it acts proactively when the need to raise charges arises. Perhaps it can be equally proactive now in lowering charges to help Singaporeans cope with business and living costs. In times when we are struck by gloomy news, a reduction of charges would offer a welcome respite and put a smile on our faces.'
Lowering fuel prices: Where's Case?
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I WAS surprised that the Consumers Association of Singapore (Case) did not lobby to reduce petrol pump prices, despite the 45 per cent drop in crude oil price from US$147 (S$199) per barrel in mid July this year to US$80 (S$118) per barrel last Friday.
Major oil companies have made record profits from consumers and now benefit even more with the delay in lowering pump prices.
Current pump prices have dropped only about 23 per cent since mid July, which means oil companies can further lower current pump prices by another 22 per cent.
This suggests that current popular grades such as 98, 95 and 92 unleaded petrol, at $1.97, $1.896 and $1.863 per litre respectively, can be lowered to $1.537, $1.479 and $1.453 per litre. There is still much room to reduce prices.
Oil companies will find reasons not to lower pump prices with explanations like:
Petrol prices did not drop as much as crude price did;
The refining margin is not fantastic; and
Logistics and labour costs have risen.
I look forward to oil companies lowering their pump prices further. At the same time, they can support community and social projects by sponsoring needy families with public transport and utility vouchers, which constitute a significant portion of monthly expenses.
David Goh
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'Why have we not heard that this 'fuel subsidy' will be removed soon?'
MS THAM SAU LENG: 'With the oil prices now hitting new lows of US$80 per barrel, which is the same as the price of oil last October, I would like to ask taxi and school bus transport operators when they will remove the additional fuel surcharge they imposed when oil prices were much higher. The fuel subsidy imposed by the school bus transport operators was especially significant as it was about 10 per cent on top of the original fares. With the savings they are now getting from the reduction of pump prices, why have we not heard that this 'fuel subsidy' will be removed soon?'
'Is it still necessary to impose a 35 per cent surcharge on taxi fares during peak hours?' MR SADON ANWAR: 'Now we are going through a recession and the price of oil has dropped drastically from its peak, is it still necessary for the Land Transport Authority (LTA) to impose a 35 per cent surcharge on taxi fares during peak hours? Will the LTA also consider reducing ERP charges on its gantries? The LTA has often said it acts proactively when the need to raise charges arises. Perhaps it can be equally proactive now in lowering charges to help Singaporeans cope with business and living costs. In times when we are struck by gloomy news, a reduction of charges would offer a welcome respite and put a smile on our faces.'
