Fuel Prices Drop Slightly Amidst Increased Global Supply

Your next fill-up will put less of a dent in your wallet, though prices are still significantly higher as compared to the same period last month. Is it premature to cue the (muted) celebrations?

Whilst the conflict is still ongoing, there has been some progression in the peace talks between Ukraine and Russia. Ceasefires also mean a reduction in the demand for energy. A further fuel ‘surplus’ has also been triggered as a direct result of nation-wide lockdowns in China, as they grapple with containing a surge in fresh COVID-19 cases.

Localised Developments Affecting Global Fuel Prices?

The initial spike in crude oil prices when the conflict first started was triggered by a sudden and significant reduction in global crude oil supply. As we mentioned in this article, until an oil-producing country is able to step up to the plate and provide an alternative to satiate the world’s hunger for Russian oil, fuel prices will only continue to rise.

"A further fuel ‘surplus’ has also been triggered as a direct result of nation-wide lockdowns in China, as they grapple with containing a surge in fresh COVID-19 cases."

And step-up did these nations. As recommended by the International Energy Agency, various countries have begun to release additional barrels of oil from their stockpile to drive raw costs down.

But What Do These Developments Look Like In Numbers?

Most of the major fuel retailers in Singapore now sell 95-Octane in the low $3 range, with Esso opting to retail theirs at just $2.99. You’re looking at a realistic saving of around $0.10 per litre, compared to the rates of just a week ago.

The same is true of all other grades of fuel, with savings of up to $0.15 per litre. Here's what fuel prices look like, versus the same time period a week ago:

Can We Realistically Expect Fuel Prices To Continue Falling?

If the situation in Eastern Europe continues to stabilise. But decreases are likely to not be significant, at least in the short term. As sanctions are still in effect, and as the world continues to embrace a life in which we co-exist with the coronavirus, demand for energy will only continue to be on the up.

To protect their own reserves, you'd expect other oil-producing nations to raise the costs of each barrel, which would again cause either an insignificant drop in pump prices, or perhaps even a rise in the unit costs. 

The fuel price fluctuations frustrating you? If you need an easy-to-refer guide, you can always rely on our petrol price chart, which you can access right here!

Read More: Fuel Prices Set To Continue Rising - And It Isn’t Because Of Taxes

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