Petrol tax can help to fund government support measures12 Mar 2022
Farah Abdul Rahim
We thank Mr Su Shih-Peng for his letter (“请考虑暂停征收汽油税缓解生活费压力”, Mar 8).
The Government understands that cost pressures on both businesses and households have increased due to the recent rise in global energy prices since Russia’s invasion of Ukraine. This could have an impact beyond fuel, to possibly electricity and food.
Pump prices are primarily driven by market forces, and may continue to rise if supply constraints persist.
Fuel duties help to provide the Government with revenue to roll out support schemes that benefit a broader spectrum of society beyond drivers and target more help to those who need it more. One example is the Household Support Package in Budget 2022.
At the same time, we are taking actions to enhance the resilience of our energy supplies. The Government will keep a close watch on pump prices to make sure that there is no anti-competitive behaviour among oil companies as global oil prices rise. Consumers may also make use of the Consumers Association of Singapore’s Fuel Kaki app to compare retail pump prices before their purchase.
We are monitoring the external situation, and the risks for our economy closely. As Minister for Finance Mr Lawrence Wong outlined in his wrap-up speech in Parliament on 2 March 2022, the Government will not hesitate to take further action to protect jobs and help households as well as businesses, if the situation worsens.
Ms Farah Abdul Rahim
Director, Communications and Engagement
Ministry of Finance