Pump prices down 3 cents just days after a cut
Posted: 24 July 2008 1313 hrs

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SINGAPORE - After constant price hikes at fuel stations, motorists have cause to smile these days. Just days after adjusting their pump prices downwards, fuel stations are offering 3 cents a litre less for all grades of petrol as well as diesel.

SPC was the last to adjust its prices at noon on Thursday, a move it said was to reflect current conditions on world oil markets.

The 92-octane unleaded petrol now costs S$2.103 per litre, the 95-octane unleaded S$2.136 a litre and the 98-octane grade petrol is priced at S$2.21 a litre. The diesel price stands at S$1.963 per litre.

Since 2002, world oil prices have seen a sixfold rise, causing consumers to feel the pinch as fuel prices spiralled along with the cost of living.

Singapore's consumer inflation in June was 7.5 percent higher compared with a year ago due mainly to higher costs in items like transport.

The rise reflects the precarious climb of oil prices over the past few months, with anticipated demand and speculators being blamed.

But just as concerns were being raised, oil prices began to reverse direction.

On Thursday, crude oil prices drifted down to US$124.28 a barrel - that's more than US$22 below the all-time high hit just two weeks ago.

The lower prices came as a US government report showed a larger-than-expected increase in domestic US gasoline stocks.

Analysts also point to declining demand in the United States, the world's biggest energy user.

Hurricane Dolly, which had caused oil prices to firm briefly early this week, also had little impact as it left in its wake only minor output cuts at some oil refineries and offshore oil and natural gas facilities in the Gulf of Mexico. - CNA/sf