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PETROL duty rates, which have remained unchanged since 2003, will go up with immediate effect, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam on Monday as he announced measures to encourage less car usage and reduce carbon emissions.
The duty rates for premium grade petrol will be increased by 20 cents per litre, and intermediate grade petrol by 15 cents per litre. These changes will take effect from Monday and yield the government about S$177 million a year.
"With falling oil prices, pump prices after the petrol duty changes would remain lower than the levels in the last two-and-a-half years," said Mr Tharman.
To ease the transition to the higher petrol duties, the government will provide a one-year road tax rebate of 20 per cent for cars, 60 per cent for motorcycles and 100 per cent for commercial vehicles using petrol. This one-year rebate will cost the government S$144 million.