Singapore petrol prices dip after weeks of increases fuelled by Iran war

Published Fri, Mar 27, 2026 · 11:41 AM

[SINGAPORE] After climbing steadily for three weeks, petrol prices in Singapore have begun to ease, with pump rates dipping over the past two days as oil markets reacted to shifting signals from the Middle East conflict.

The pullback follows a sustained run-up triggered by the war in Iran, where disruptions to the Strait of Hormuz – a key global oil supply route – tightened supply expectations and drove crude prices higher.

The  first sign of relief came on March 25, when petrol prices were cut after nearly three weeks of increases. Shell lowered its posted prices of 95- and 98-octane petrol, as well as its premium V-Power grade, by 5 cents, while diesel prices were left unchanged after a sharp rise a day earlier.

The downward adjustments extended into March 26, marking the second straight day of declines.

Esso led with a 5-cent cut across its petrol grades, followed by Sinopec, which matched the reduction for its 95- and 98-octane fuel and lowered its premium X-Power grade more steeply, by 18 cents. Caltex joined later in the day with similar cuts for petrol, although it raised diesel prices by 20 cents.

SPC also lowered its petrol prices by 5 cents, with its posted price for 95-octane fuel at S$3.41 per litre as at the evening of March 26.

Following the latest revisions, the price of 95-octane petrol – the most widely used grade – ranged between S$3.42 and S$3.46 per litre across major operators on March 26.

But the reprieve proved fragile. Oil prices rebounded above US$100 on March 26 as Iran denied that formal negotiations were under way and indicated that any ceasefire discussions would be complex, underscoring the uncertainty facing global energy markets.

The dip in pump prices comes after a sharp and sustained climb since the conflict began on Feb 28, when the United States and Israel launched strikes on Iran.

Within days, petrol stations in Singapore began raising prices, tracking the surge in crude oil costs and anticipating higher supply chain expenses such as freight and insurance. By mid-March, pump prices had surpassed levels seen during the Ukraine war in 2022.

At one point, the price of 95-octane petrol had risen by nearly 20 per cent from pre-war levels, translating to significantly higher costs for motorists filling up their tanks.

The impact has also rippled across the broader transport sector.

Taxi operator ComfortDelGro said on March 17 that it would temporarily raise fares and introduce booking fees to help drivers cope with higher fuel costs, while ride-hailing platforms rolled out discounts and rebates to cushion the impact.

Even as petrol prices eased, diesel has continued to trend upwards, diverging from petrol’s trajectory.

Diesel prices in Singapore overtook those of 95-octane petrol on March 12, reflecting tighter global supply of middle distillates even before the conflict began. Industry observers say this has been exacerbated by strong demand from major economies and ongoing supply concerns.

Analysts note that petrol prices in Singapore are not regulated and are adjusted daily by retailers, based largely on international oil price benchmarks and other cost factors. As a result, local pump prices tend to respond quickly to geopolitical shocks.

While the recent declines may offer some respite, analysts caution that volatility is likely to persist as long as the conflict in the Middle East remains unresolved and supply risks linger. THE STRAITS TIMES