Pump prices down

Pump prices down

PETROL stations have cut pump prices for the eighth time since July, amid economic bedlam in the United States and Europe that has driven oil prices to near 12-month lows.
Local retailers lowered petrol and diesel rates yesterday by five cents a litre across the board.

With the reduction, 92, 95 and 98-octane petrol now cost $1.863, $1.896 and $1.97 a litre respectively, before discount. Shell’s V-Power is now $2.099 a litre, while Caltex Platinum is $2.096.

Diesel, the fuel of commerce, is $1.703 a litre.

The cuts come as crude oil fell below US$90 a barrel on Monday from a high of US$148 in July.

Oil prices have been falling as the economic turmoil in the US and Europe, spurred by the worldwide credit crisis, dampens demand.

Drivers have also been switching to more fuel-efficient cars and cutting back on discretionary trips.

With the latest cuts, pump prices are now down 39 cents a litre since their July highs, while diesel is 33 cents lower.

Oil industry consultant Ong Eng Tong expects prices to slide even further in the coming months.

But Mr Ng Weng Hoong, editor of energy news portal EnergyAsia.com, said oil will resume its northward trek in the long term.

‘The most recent analyses by the International Energy Agency and Opec predict world demand will still be growing,’ he said. ‘The world will still be using more oil despite the financial crisis.’

Source : Straits Times - 08 Oct 2008

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