PSP urges more support as fuel price spike raises costs for businesses and families

SINGAPORE: The Progress Singapore Party (PSP) has called on the government to introduce more measures to cushion households and small businesses from rising fuel costs linked to the war in the Middle East.

In the latest issue of its newsletter, the Palm, PSP emphasised that the price of fuel has risen substantially since the middle of the month. 

Diesel is now more expensive than petrol, and on the morning of March 31, surged past S$4.00.

The party noted that as 85% of the vehicles conveying goods in Singapore use diesel, this will likely result in higher logistics and operational expenses, with the additional costs expected to be passed on to consumers, resulting in inflation.

“The Progress Singapore Party (PSP) is concerned about the impact on businesses and households,” the party wrote, “SMEs, which form the backbone of our economy, will face mounting cost pressures that could translate into higher prices for everyday goods.”

PSP said that the government should do more to increase long-term energy security and called for several measures.

First, the transition to electric goods vehicles should be hastened. This can be done by the government giving more incentives for businesses to switch from vehicles using diesel. At the same time, the price of road taxes for diesel vehicles should also be raised.

Secondly, more can be done by way of renewable energy, such as raising the present target of 2 gigawatt-peak of solar deployment by 2030. More incentives may also be offered to homeowners for installing rooftop solar panels, particularly those who have private properties. 

Finally, PSP called for the government to consider stronger regulations on petrol companies, as this would ensure fairness when it comes to higher pump prices.

The party acknowledged that Consumers Association of Singapore (CASE) president Melvin Yong has called for the city-state’s petrol companies to have increased price transparency, as well as quickly and fairly reflect global oil price drops at the pump but said this is not enough.

“The petrol market is arguably oligopolistic with only a limited number of operators. Only stronger regulation, such as recommended price changes or price ceilings based on market movements, can compel petrol companies to price fuel fairly and prevent them from raking in profits during a crisis,” PSP added.

The broader concern, PSP added, is that prolonged fuel volatility will not only hurt transport-dependent businesses but also deepen inflationary pressures for ordinary Singaporean households. /TISG

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