Shell in Singapore


Frequently Asked Questions	printable version

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How can I find out the fuel prices in my area?

What is the retail price of fuel made up of?

What taxes are applied to fuel?

Who controls pump prices?

Why are fuel prices at the service station significantly higher than a year ago?

Why are fuel prices cheaper in some other countries, e.g. Malaysia, Australia and the USA?

How does the US exchange rate affect Singapore petrol prices?

Why is diesel cheaper than petrol?

Why is Shell V-Power more expensive?

How does Shell ensure it's prices are competitive?

Why are fuel prices in Singapore higher compared to some other countries when it has one of the largest refinery businesses in the world?

How can I find out the fuel prices in my area?

Prices for three grades of Shell fuel, UL 95, UL98 and Shell Diesel can be found in front of every Shell station on the "Prices After Discount" board. In addition, pump price and prices after discount (Nett Price) for all fuel grades are also found at www.shell.com.sg.

What is the retail price of fuel made up of?

The price of fuel at the retail station is called the "pump price" . It comprises the product cost, government excise and taxes, Shell marketing, distribution and retail share.

What taxes are applied to fuel?

Petrol - Excise tax of 44cpl is applied on every litre of petrol. GST is applied to all fuels (petrol and diesel) as it is purchased at the retail station.

Diesel - Diesel does not incur any excise duty, only GST.

Who controls pump prices?

Ultimately, the retailer determines the pump price of fuel. Here in Singapore, pricing in the retail oil industry is unregulated. The pricing decision is influenced by a number of factors including:

- cost of product (crude and internationally traded product costs)

- cost of bringing the fuel to retail site (distribution costs)

- cost of running the service station (e.g. wages, rent, utilities bills, land lease and depreciation)

- competition with service stations in the area

- promotional and marketing activities

Why are fuel prices at the service station significantly higher than a year ago?

The cost of buying fuel in a service station is higher because the cost of buying finished product from the refinery has increased significantly, in response to the increase in crude oil and internationally traded finished product prices.

Why are fuel prices cheaper in some other countries, e.g. Malaysia, Australia and the USA?

The price of fuel in different countries is affected by:

- cost of buying finished product in the country

- different operating costs and economies of scale

- Government excise and tax rates

- Government subsidies for fuel (e.g. in Malaysia)

-Currency fluctuations

How does the US exchange rate affect Singapore petrol prices?

Since the world's major crude oil markets are generally traded in US dollars, any variation between Singapore's exchange and the US dollar will impact the cost of buying crude oil in Singapore. If the Singapore dollar strengthens against the US dollar, then the cost of crude is cheaper in Singapore and vice versa.

Why is diesel cheaper than petrol?

Diesel is cheaper than petrol due to the difference in tax structure and product cost.

Diesel usage is taxed through the road tax system whereby the cost of owning a diesel vehicle is six times more expensive than a petrol vehicle compared to petrol which is subject to an excise duty of 44cpl.

Why is Shell V-Power more expensive?

Shell V-Power is a premium fuel based on a reformulation of base fuel and has special additives that are designed to give you more power and performance. These enhancements mean that the premium fuel is more expensive to manufacture and distribute. You can find out more about the benefits of premium fuels at the Shell V-Power section.

How does Shell ensure it's prices are competitive?

Due to Singapore's small geographical size, Shell stations are located within close proximity to competitor sites. Our station staff are well placed to keep close tabs on fuel and promotional prices in the market. They are able to quickly feedback the latest changes in prices thus enabling Shell to ensure that our offer is competitive.

Why are fuel prices in Singapore higher compared to some other countries when it has one of the largest refinery businesses in the world?

Whilst Singapore has one of the largest refinery businesses in the world, the products are mainly produced for export. The local Singapore market has to purchase our own supply of petrol and diesel based on internationally traded product prices, as does any other country in the region. Unlike Malaysia, Thailand or Indonesia, there is currently no fuel subsidy plan in place to mitigate the rising cost of product. For more information on how Singapore petrol prices compare to other countries, please see Petrol Pricing in Singapore and Diesel Pricing in Singapore.

Frequently Asked Questions