PUBLISHED ONApril 07, 2026 9:54 AMBYSean LerAmidst the Government announcing a series of support measures to cushion the impact of the Middle East situation, now in its sixth week, it will however not reduce petrol or diesel duties.
"We do not think this would be the right move. It is too blunt an approach, and it could also be regressive," said Senior Minister of State for Finance Jeffrey Siow as he delivered a ministerial statement — on what the Government is doing to support businesses, workers, and households — in Parliament on Tuesday (April 7).
Addressing questions fielded by several Members of Parliament on the magnitude and speed of pump prices adjustments, the senior minister of state explained 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 where prices are higher, and over time, this can tighten supply and leave us worse off," Siow said, adding that the Government also wishes to preserve the price signals for consumers to use energy more efficiently.
@asiaone Senior Minister of State for Finance Jeffrey Siow explains why the Government will not consider reducing fuel or diesel duties, amidst measures introduced on Tuesday (April 7), to help businesses and households cushion the impact of rising costs due to the Middle East conflict. #sgnews #Singapore #Parliament #MiddleEast #War#Fuel #Petrol #Diesel #Prices ♬ original sound - AsiaOne
During subsequent clarifications, Workers' Party chief Pritam Singh referred to road tax rebates and petrol duty rebates given to motorcyclists, taxi and private-hire drivers in 2021 when petrol duties were raised, and asked for the Government's threshold in determining the extension of similar measures.
Siow reiterated that a road tax rebate would be "too blunt". He explained that road tax works in tandem with other policies to achieve longer-term outcomes such as pricing and externalities relating to public health and pollution, and influencing vehicle buyers to choose fuel efficient vehicles.
"Therefore the reduction of road tax is too blunt a tool. And so, what we want to do is, in fact, be more focused and targeted in who we support.
"And our approach, therefore, is to provide direct support to small-medium enterprises, companies, drivers, people who are more directly affected by the fuel prices," he said.
Aljunied GRC MP Fadli Fawzi also asked if the Government would consider regulating petrol station operators to ensure that changes in petrol prices are linked to actual petrol conditions.
In her reply, Minister of State for Trade and Industry Gan Siow Huang said the Government's approach is to ensure that the market remains competitive, adding that there is presently no evidence to suggest that the market structure is not competitive.
She pointed to Cynergy, operated by Union Gas, as an "encouraging sign" which provides more choices to consumers.
However, she stressed that the Competition Commission of Singapore will continue to watch pump prices to ensure that fuel companies here do not engage in anti-competitive behaviour.
Pump prices for diesel and petrol have risen steadily over the past month.
The posted prices for diesel ranged between $2.74 and $2.88 on March 6. As of April 7, prices have crept up to between $4.42 and $4.68.
Meanwhile, prices for the more popular 95-octane petrol has risen from between $2.97 and $3.05 on March 6, to between $3.46 and $3.47 on April 7.
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