Fuel duty to be raised with immediate effect

Fuel duties will be raised with immediate effect as part of the recently announced Budget 2021 adjustments.

Mr. Heng Swee Keat announced on 16 January 2021 that petrol duty rate will be raised with immediate effect, by $0.15 per litre for premium petrol (to a total of $0.79 a litre). The fuel duty for intermediate grade petrols, meanwhile, will be raised by $0.10 per litre (to a total of $0.66 a litre).

However, measures were also announced intended to ease the fuel price hike for Singaporeans and especially those who relied on vehicles for their livelihood. The total amount set aside for thses measures amounts to $113 million, according to a press release from the Land Transport Authority.

These announced measures include a 60% road tax rebate for all motorcycles using petrol for one year, as well as a cash payout amounting to $80 for those registered at the close of 16 February 2021, with an engine capacity of 200cc and below.

Individual owners of motorcycles registered at the close of 16 February 2021, with an engine capacity of 201cc to 400cc meanwhile, will get a payout amounting to $50.

Meanwhile, active taxi and private hire car drivers will receive a petrol duty rebate of $360 which will be given out over consecutive four months. All taxis and passenger cars using petrol will also receive a one-year road tax rebate of 15%.

Goods vehicles and buses using petrol will also have a one-year tax rebate of 100%. All road tax rebates will take effect from 1 August 2021. More details will be released by LTA in April.

Taken together, these measures will offset one year of petrol duty increases for taxis and motorcycles and about two-thirds for commercial vehicles and cars.