Singapore Sees First Gasoline Price Drop in Weeks as Global Oil Tumbles

In a surprising turn of events, gasoline prices in Singapore have seen a drop for the first time in nearly three weeks. Shell, one of the leading retailers, has become the pioneer in cutting its rates.

As of Wednesday afternoon, Shell was selling 95-octane petrol at a 1.44% reduced rate, which translates to SGD3.42 (US$2.67) per liter. This move has set them apart from other companies such as Caltex, Esso, and Sinopec which have opted to maintain their rates at SGD3.47. Despite the reduction in petrol prices, Shell has increased its diesel price by a significant 5.3%, hiking it up to SGD3.93.

Global Oil Prices and International Relations

Interestingly, this development has coincided with a fall in global oil prices. The Brent benchmark, for instance, slipped below $100 at the time of writing. This was largely attributed to an announcement from Iran stating that “non-hostile vessels” could safely navigate through the Strait of Hormuz, provided they liaised with its authorities.

Simultaneously, U.S. President Donald Trump has reversed his earlier threats aimed at Iran’s power grid. He recently stated that the U.S. and Iran had engaged in “very good and productive” conversations.

Trends in Diesel Prices

According to Tom Kloza, a prominent energy adviser at Gulf Oil, diesel prices have been climbing at a steeper rate than petrol prices. This is party due to a squeeze on supply, even before any conflict. He stated, “The world was well supplied with petrol on Feb 28, but it was not well-supplied on these middle distillates like diesel, gasoil, marine fuel, and jet fuel.”