'No evidence of anti-competitive behaviour by petrol firms'

A 2017 study says though the petrol majors track each other's moves, their prices do not always move in sync

Janice Heng

Published Tue, May 26, 2020 · 09:50 PM

Singapore

THERE is no evidence of anti-competitive behaviour by petrol companies here, and a fall in oil prices may not always mean a drop in retail petrol prices, said Senior Parliamentary Secretary for Trade and Industry Tan Wu Meng in Parliament on Tuesday.

When crude oil is refined, it separates into different products in roughly fixed proportions, so changes in demand for some refined products can affect others, he said in response to a question from Member of Parliament Ang Wei Neng.

For instance, demand for jet fuel has fallen dramatically due to global travel restrictions, meaning that refineries must store the excess jet fuel, reduce the price so as to sell more, or reduce the production of j…