Vehicle owners and businesses using fuel will be smiling this month as the government has announced a significant drop in fuel prices.

Prices have gone down by as much as 19 sene.

According to the new price structure effective 1 October, petrol decreased by 18.9 sene per litre, from $3.17 to $2.98 per litre.

Diesel decreased by 18.7 sene per litre, from $3.27 to $3.08 per litre and kerosene decreased by 18.1 sene per litre, from $2.86 to $2.68 per litre.

The October prices are based on the August 2024 Mean of Platts Singapore (MOPS) marker prices.

“Increasing concerns regarding the Middle East crisis initially set the oil price trajectory upwards; however, these were not enough to sustain prices, which on average were between US$6.00 and US$7.00 per BBL lower in August,” said Deputy Prime Minister and Acting Minister for Finance Tuala Tevaga Iosefo Ponifasio.

“The main driver of oil prices now is concern about the downturn in the global economy, particularly China's lower growth forecasts and, consequently, oil demand.”

Fuel prices have constantly dropped in the last two months as well.

Taxi proprietors have welcomed the news saying the reduction would mean an increase in profits. Many are saying that the decrease in fuel prices should also be reflected in the prices of food items and other products.