Case says Shell's price hike for petrol not acceptable
27 Feb 2015|3,461 views
Three petrol companies have replied to a Consumers Association of Singapore (Case) request to explain their pump price rises this week, after the consumer watchdog accused them on Tuesday of profiteering, reported The Straits Times.
Caltex and Singapore Petroleum Company (SPC) wrote in with 'valid explanations', said Case Executive Director Seah Seng Choon yesterday. Shell's explanation, however, was not acceptable. "Shell told us that the increase was necessary because of other costs, including crude oil prices, exchange rates, production costs," said Mr. Seah. "But they did not say how these costs have gone up and did not give us a breakdown. They gave a vague and general reply that did not address the issue."
While Shell's price hike for its regular-grade petrol is similar to SPC's, its premium-grade petrol increased three cents more than the tariff amount.
SPC, which added an additional cent per litre, said this was to cover the Goods and Services Tax (GST). Case found this valid. "We have checked with the tax department and they said that as long as the excise duty is priced into the product, GST is attracted," said Mr. Seah. Caltex raised prices based on the tariff change, then reduced them by three cents the same day. Case has no issue with this, Mr. Seah added. The Straits Times understands that Esso, which made a similar price increase to SPC's, replied to Case last night.
The Government said on Monday that petrol duty would be increased by 20 cents a litre for premium-grade petrol and 15 cents for the intermediate grade.
Three petrol companies have replied to a Consumers Association of Singapore (Case) request to explain their pump price rises this week, after the consumer watchdog accused them on Tuesday of profiteering, reported The Straits Times.
Caltex and Singapore Petroleum Company (SPC) wrote in with 'valid explanations', said Case Executive Director Seah Seng Choon yesterday. Shell's explanation, however, was not acceptable. "Shell told us that the increase was necessary because of other costs, including crude oil prices, exchange rates, production costs," said Mr. Seah. "But they did not say how these costs have gone up and did not give us a breakdown. They gave a vague and general reply that did not address the issue."
While Shell's price hike for its regular-grade petrol is similar to SPC's, its premium-grade petrol increased three cents more than the tariff amount.
SPC, which added an additional cent per litre, said this was to cover the Goods and Services Tax (GST). Case found this valid. "We have checked with the tax department and they said that as long as the excise duty is priced into the product, GST is attracted," said Mr. Seah. Caltex raised prices based on the tariff change, then reduced them by three cents the same day. Case has no issue with this, Mr. Seah added. The Straits Times understands that Esso, which made a similar price increase to SPC's, replied to Case last night.
The Government said on Monday that petrol duty would be increased by 20 cents a litre for premium-grade petrol and 15 cents for the intermediate grade.
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