Pump prices in Singapore have surged to an 11-month high, adding to concerns about persistent inflation in the Asian financial hub.
The cost of 95-octane gasoline, the city-state’s most widely used automotive fuel, rose to a maximum of S$2.88 a liter ($8.10 a gallon) on Aug. 7, the highest level since late August 2022, according to data from vehicle service platform Motorist.
Policymakers have expressed concern about inflation, which is still at historically high levels after peaking in August last year. The higher gasoline prices are reflective of global trends, driven by surging prices for crude amid a possible escalation of Russia’s war with Ukraine.
“Private transport prices account for 12.21% of the headline CPI basket, which is not insignificant,” said Selena Ling, chief economist at Oversea-Chinese Banking Corp. based in Singapore. Although energy costs are still lower than a year ago, upward price pressures in the coming months “could feed into logistics and other business costs,” she said.
--With assistance from Yongchang Chin, Serene Cheong and Rishaad Salamat.
