Overheads limit majors' ability to extend lower petrol prices

Singapore

OVERHEAD costs may be limiting oil majors' ability to pass on the effects of lower crude oil prices to Singapore consumers in the form of lower petrol prices, according to market watchers based here.

It has become somewhat of a longstanding gripe among consumers that petrol prices in Singapore do not seem to fall as much or as fast as crude oil prices. The matter was raised in Parliament last month as global oil prices fell, and has been highlighted again as pump prices stay unchanged even as the West Texas Intermediate (WTI) grade of crude oil traded at below-zero prices for the first time on Monday.