Quick Read
- Most Singapore petrol operators raised 95-octane fuel prices to S$2.92 per litre on March 3, 2026.
- The price hike is attributed to the escalating US-Israel war on Iran, which has closed the Strait of Hormuz.
- The Strait of Hormuz is a critical maritime corridor, handling a significant portion of global oil shipments.
- Diesel prices also rose, with the highest posted price at S$2.70 per litre.
- SPC was the only major operator to keep its 95-octane petrol price unchanged at S$2.87 per litre.
SINGAPORE (Azat TV) – Petrol prices in Singapore significantly increased on March 3, 2026, as major operators adjusted rates upwards in response to a widening Middle East conflict that has disrupted global oil supplies. The escalation of the US-Israel war on Iran, including threats to the vital Strait of Hormuz, has driven up crude oil prices and subsequently impacted fuel costs for Singaporean consumers and businesses.
Singapore Fuel Prices Surge Amid Geopolitical Tensions
On March 3, most major petrol operators in Singapore, including Shell, Caltex, Esso, and Sinopec, raised the price of their popular 95-octane fuel by four cents, bringing it to S$2.92 per litre. Singapore Petroleum Company (SPC) notably kept its 95-octane price unchanged at S$2.87 per litre, making it the most affordable option. Prices for other fuel grades also saw increases; 92-octane petrol rose to S$2.88 at Esso and Caltex, while SPC offered it at S$2.84. For 98-octane petrol, prices ranged from SPC’s S$3.38 to Shell’s S$3.44, with premium options reaching up to S$3.66 per litre at Shell. Diesel prices also climbed, with Shell, Esso, and Caltex posting S$2.70 per litre, while SPC maintained the lowest rate at S$2.57.
Middle East Conflict Disrupts Global Oil Supply
The immediate cause for the surge in petrol prices is the escalating US-Israel war on Iran, which has led to significant disruptions in global oil shipping lanes and production. On March 2, an Iranian Revolutionary Guards senior official declared the critical Strait of Hormuz closed and threatened to attack any vessel attempting passage. This waterway, situated between Iran and Oman, typically handles between 20 to 30 percent of the world’s crude oil shipments. Reports indicate that ship traffic through the Strait has fallen by 80 percent amidst the conflict, with four tankers reportedly struck by drones. Furthermore, Iranian attacks have led to Qatar halting natural gas production and Saudi Arabia’s oil refinery being targeted by drone strikes, according to Bloomberg. These developments caused the benchmark Brent crude oil contract to climb 4.7 percent to US$81.40 a barrel on March 2, its highest close since January 2025, as reported by Reuters.
Impact on Singaporean Consumers and Businesses
The ripple effect of these global developments has been felt almost immediately at local petrol pumps. Analysts, including Mr. Song Seng Wun, an economic advisor at SDAX investment platform, and OCBC chief economist Selena Ling, confirmed that crude oil price spikes lead to an almost instantaneous pass-through effect on fuel prices. They noted that operators are pre-emptively pricing in higher freight and insurance costs due to fears of extended supply disruptions. Consumers in Singapore have expressed varied reactions; while some drivers like Mr. Lim found the new rates manageable, others, particularly taxi and private hire drivers, voiced significant unhappiness. Mr. Toh, a taxi driver, described the immediate price increase as ‘daylight robbery,’ fearing a substantial impact on his business. Singapore, a trade-dependent economy and a major refining and petrochemical hub, is highly vulnerable to disruptions in global energy flows and maritime trade, as it relies heavily on the Middle East for petroleum supplies.
Historical Context of Fuel Price Volatility
This is not the first instance of significant fuel price volatility in Singapore due to geopolitical events. In March 2022, the Ukraine crisis triggered several rounds of fuel price increases, with 95-octane petrol breaching the S$3 mark and the costliest grades exceeding S$4 per litre in subsequent months. These historical precedents underscore Singapore’s susceptibility to global energy market fluctuations, especially given its role as a refining and re-export hub for the Asia-Pacific region. The current situation, with fears of a prolonged supply interruption, could keep crude prices elevated for an extended period, potentially stoking global inflation and disproportionately affecting energy-reliant regions like Asia.
The recent surge in Singapore’s petrol prices highlights the nation’s acute sensitivity to geopolitical instability in major oil-producing regions. As a key refining and re-export hub, Singapore’s economic resilience is inextricably linked to the stability of global energy markets, making reliable supply chains and predictable pricing crucial for both its industries and its citizens.