Why Are Petrol Prices So High in Singapore Right Now—and Will They Drop?

Topping up petrol these days is a pain in the behind. If you’re feeling the pinch of petrol prices, you’re not alone. 

Petrol prices in Singapore have shot up over the past couple of months thanks to the conflict in the Middle East. Worse still if you’re on a diesel powered car because the price of diesel surged over 50%.

Upon last check, prices for 95-octane petrol was around $3.46 per litre vs $2.87 in early Feb. Diesel is now around $4.37 per litre vs $2.62-$2.66 in early Feb.

But the main question on everyone’s minds is: Will petrol prices go back down? 

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Why petrol prices in Singapore are so high right now

Petrol retailers in Singapore fix the price of petrol each day, based on regional benchmarks—the Mean of Platts Singapore—published by S&P Global Platts. As crude oil cost contributes to the cost of petrol, as long as the cost of crude oil is elevated, so will petrol prices here.

Other factors contribute too. Here are 3 three key drivers affecting prices: global oil supply, refining costs, and local taxes.

1) Global supply disruptions

First we have to understand how the conflict affects petrol prices. The most immediate cause of high oil prices is the blockade of the Strait of Hormuz that began in February 2026, driving up prices. The Strait is a chokepoint where much of the world’s oil supply passes.

When there are threats of blockades or disruptions in this area, global oil markets react immediately. Even the risk of disruption can push prices up sharply because traders anticipate reduced supply.

This matters especially for Singapore because more than half of our crude oil imports come from the Middle East. When supply from that region is threatened, the cost of oil that Singapore imports increases almost directly.

So if you thought that the conflict happening far from our shores didn’t affect you, well, it’s affecting you now. High oil prices are also driving up electricity costs as our electricity is generated from burning oil.

2) Refining costs

Crude oil cannot be used as petrol immediately. It must first be refined, and this is where Singapore comes in.

Apparently, according to ST, we’re the:

• The largest bunkering hub in the world
• The 3rd largest oil trading hub globally
• The 6th largest refinery export hub, despite not producing any crude oil of our own

We’re basically part of the global oil supply chain—but this also means that we’re affected by geopolitics. 

When refining costs rise, due to factors such as limited refinery capacity, higher energy costs, or disruptions, petrol prices remain high even if crude oil prices stabilise.

This explains why you may not see pump prices fall quickly even when oil prices in the news appear to dip.

3) Local taxes and duties

Singapore imposes high duties on petrol, so when the price of oil rises, the duty on top of the oil makes the price even higher. 

On top of global and regional costs, Singapore imposes fuel duties per litre. These duties are fixed, meaning they do not decrease when oil prices fall. 

So when oil prices rise, you feel the full increase plus duties. When oil prices fall, the drop is partially offset by the fixed duty component

Even in a lower oil price environment, petrol here will not become dramatically cheap.

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Why Singapore petrol prices track global markets so closely

Unlike some countries that subsidise fuel or cap prices, Singapore adopts a market-based pricing approach. Because Singapore imports all its oil and refined products, petrol prices are closely tied to global benchmarks. 

Retailers adjust prices in response to changes in wholesale costs, exchange rates, and market conditions.

This means Singapore drivers experience:

• Fast increases when global oil prices rise
• Limited buffering from government intervention

In short, Singapore’s system is efficient and transparent — but it also means prices can feel volatile.

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Why petrol prices go up fast but fall slowly

Many drivers notice that petrol prices seem to rise quickly but take longer to come down. This is referred to as the “rockets and feathers” effect.

When oil prices increase, petrol stations tend to adjust pump prices quickly to reflect higher costs. However, when oil prices fall, petrol prices come down slower as petrol stations face less pressure to lower prices and there’s no incentive for them to slash prices ahead of their competitors. 

It was the same in 2022 when Russia invaded Ukraine and sent petrol prices skyrocketing to $3.42 for 95-octane petrol. It took months before prices eased back down. 

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Will petrol prices drop in 2026?

The outlook for petrol prices depends heavily on how global tensions evolve.

If the conflict affecting oil supply, particularly in key regions like the Middle East, continues or escalates, energy prices are likely to remain high. Experts have indicated that it will take time for shipping through the Strait of Hormuz to recover and to restore damage to oil and gas production infrastructure, as well as supply chain operations. 

On the other hand, prices MAY stabilise or ease if geopolitical tensions subside, supply increases, or global demand weakens.

Acting Minister for Transport and Senior Minister of State for Finance Jeffrey Siow has also said that Singapore will not reduce petrol and diesel prices as they go against the existing price signals set before the conflict – and to encourage people to use energy more efficiently.

The government also has no plans to introduce road tax rebates, so be prepared to pay more. 

Instead, the cheaper alternative may be in the form of discounts through your credit card or partner promos that petrol retailers have. 

TLDR, with no concrete ceasefire in sight and uncertainty all around, expect oil prices—and consequently, your petrol price, to remain high for this year. 

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How does this compare to the 2022 spike?

The last major surge in petrol prices happened in 2022, when oil prices spiked sharply following the Russia-Ukraine conflict. 

But the price spike in 2022 was sudden and dramatic —a barrel of crude oil hit a high of nearly USD130 per barrel. 95-octane petrol prices hit $3.42 per litre back then.

2026 is a slower, although more sustained increase. While we are not seeing the same extreme volatility as before, prices are still high and may stay that way for longer.

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How to reduce driving costs in Singapore

For those who can’t live without their cars, you can take some steps to reduce how much you pay.

Maximise credit card discounts

This is a no-brainer as you’re already doing it. But if you feel that you could benefit from switching to a different card that can give you more cashback or rewards on your petrol top ups, compare the best petrol credit cards in Singapore.

Check out partner promotions 

Find out which petrol station has tie ups with banks or other loyalty programmes that offer additional rebates or vouchers. 

• Esso: Esso Smiles welcome gift for new members
• Shell: Shell GO+ membership lets you earn points for each pump, more discounts for SAFRA and HomeTeamNS
• Caltex: Use NTUC Link Rewards to get a discount off your next petrol top up; GrabPay users can get 16% off their petrol purchase when they link their GrabPay wallet to the CaltexGO app
• SPC: SPC+ app welcome discounts for new members
• Sinopec: Sinopec Plus SG member app gives points for each dollar spent 
• Smart Energy: Energy Card membership give discounts and other promotions 

Relook at your spending habits

The simple act of minimising your expenses can help you save a bit more if you’re looking to reduce your fuel costs. Take public transport on some days or forego that mid-day bubble tea if you can’t live without your car. 

Fuel up on RON97 in Johor 

While we’re not allowed to pump RON95, RON97, the unsubsidised fuel, is still allowed. Although Malaysia has increased its petrol prices as well—RM4.90 per litre for RON97—it is still cheaper for regular commuters to JB. 

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