Petrol prices have crashed back to 2009 prices where crude oil was sold at less than US$50 per barrel. Since last Thursday, SPC & Caltex implemented price reductions and soon Shell and Esso followed to match the competition.
Prices were adjusted downwards by 4 cents per litre while diesel price was cut by 3 cents per litre.
The most commonly used grade of petrol, RON 95, is now $1.79 a litre, while the cheapest grade, RON 92 is $1.75. Prices for RON 98 fuel ranges from SPC’s $1.91 to Shell V-Power’s $2.24. Diesel costs $1.29 a litre. All the prices are before petrol and credit card discounts.
Crude oil prices have fallen by almost 55% since last year but the corresponding drop in petrol prices is slow to come by.
In view of weaker demand from major importers such as China and increasing competition between Middle Eastern crude and US shale producers, prices are expected to hover around the current range.
According to Mr. Ong who has more than 40 years in the Oil & Gas industry, he expects the price to find stability at the US$40 range.