Budget 2021: Continued support for taxi and private-hire drivers, amid petrol duty increase

Singapore – Beginning Tuesday (Feb 16), motorists will have to pay more when pumping at a gas station as petrol duties are raised for the first time in six years.

During his Budget 2021 statement on Tuesday, Deputy Prime Minister and Finance Minister Heng Swee Keat announced that petrol duties would be increased, effective immediately.

The last time petrol duties were raised was in 2015 to reduce carbon emissions by encouraging less car usage.

To build on the momentum of the more efficient use of fuel and environmentally-friendly alternatives, petrol duty rates will be raised, said Mr Heng.

For premium petrol (98-octane and above), the duty will be raised by 15 cents per litre to 79 cents a litre, while intermediate petrol (92-octane and 95-octane) will be raised 10 cents a litre to 66 cents a litre.

To ease the transition for Singaporeans, especially those who rely on their vehicles for their livelihood, Mr Heng assured support would be provided to offset costs.

For motorcycles using petrol, a 60 per cent road tax rebate will be provided to all motorcyclists for one year. In addition, individual owners of smaller motorcycles up to 400cc will receive S$50 or S$80 in cash, depending on engine capacity.

Active taxi and Private-Hire Vehicle (PHV) drivers using petrol and petrol-hybrid vehicles will be given petrol duty rebates of S$360 handed out over four months in addition to one-year road tax rebates of 15 per cent.

For goods vehicles and buses using petrol, there will be a 100 per cent road tax rebate for one year while cars using petrol will receive a 15 percent road tax rebate also for one year.

All road tax rebates will take effect on Aug 1, 2021.

“Taken together, these measures will offset about one year of petrol duty increases for taxis and motorcycles, and about two-thirds for commercial vehicles and cars,” said Mr Heng.

“Most of the expected revenue increase from the petrol duty increase in the coming year will be given out through the offsets estimated to cost S$113 million.”/TISG