Four months after the government implemented a fuel-pricing mechanism that saw prices fall at the pump, petrol prices have risen back up to pre-intervention levels, sparking criticism among consumers.
Until last month, the new pricing mechanism had consistently raised prices every 10 days at a rate of $0.3374 for premium , while regular and diesel were capped at $0.3174 and $0.2927, respectively. However, June data shows per litre increases of $0.3850 for premium, $0.3665 for regular and $0.3601 for diesel.
After a long negotiation process with the Kingdom’s oil importers, the Ministry of Commerce adopted a pricing mechanism earlier this year to reflect the falling price of the commodity worldwide.
Pen Sochiveat, director of domestic trade at the Ministry, explained that the formula to determine price is based on the average Means of Platts Singapore (MOPS) benchmark, which is adjusted for local customs fees, operating costs and VAT. Sochiveat said the incremental rise in fuel prices over the last four months showed the mechanism was achieving the desired results.
However, as prices reached pre-intervention levels, consumers have taken to social media to criticise the government’s pricing initiative.
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