Plunge in crude oil prices will not necessarily lead to drop in petrol prices, says Singapore's Trade and Industry MinistryOn April 20, oil prices in the United States dropped below zero — the first time in history — as demand has fallen sharply amid the global economic fallout resulting from the Covid-19 pandemic. — Reuters pic
On April 20, oil prices in the United States dropped below zero — the first time in history — as demand has fallen sharply amid the global economic fallout resulting from the Covid-19 pandemic. If there is no change to the underlying demand for retail petrol, the reduction in supply would increase its prices instead, said Tan.
He also explained that the price consumers pay for petrol also depends on the petrol companies’ operating costs, land costs, taxes and rebates.