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Wednesday, 3 June 2015

BUDGET 2015 Petrol duty up but there's a one-year road tax rebate

Petrol duty up but there's a one-year road tax rebate

Petrol duty up but there's a one-year road tax rebate

Published on Feb 24, 2015 2:44 AM



The increase in petrol duties, which have remained unchanged since 2003, will "encourage less car usage and reduce carbon emissions", Finance Minister Tharman Shanmugaratnam said in Parliament yesterday. -- ST FILE PHOTO 

By Adrian Lim




PUMP prices are set to rise, with the Government announcing an immediate hike in petrol duties during its annual Budget yesterday.

But a one-year road tax rebate of 20 per cent for cars and 60 per cent for motorcycles is expected to help ease the burden of the higher cost.

The tariff for premium grade petrol is now 64 cents a litre, up by 20 cents, while the duty for intermediate-grade petrol is 56 cents per litre, up by 15 cents.

The increase in petrol duties, which have remained unchanged since 2003, will "encourage less car usage and reduce carbon emissions", Finance Minister Tharman Shanmugaratnam said in Parliament.

The hike took effect yesterday. Intermediate-grade petrol such as 95-octane ranged in price from $1.85 to $1.89 a litre, but, with the increase, it will cost between $2 and $2.04 before discount.

The price for premium petrol such as 98-octane, which was between $1.99 and $2.40 a litre, will range from $2.19 to $2.60.

A motorist driving a 1,600cc car and who pumps an intermediate-grade petrol will have to pay about $230 more a year.

This is assuming the vehicle has a typical fuel efficiency of 8.6 litres for every 100km and clocks about 17,800km, the average annual mileage for cars in Singapore.

Comparatively, a motorist who drives a 2,000cc car with a fuel efficiency of 10 litres per 100km, and who pumps a premium grade of petrol, will have to fork out about $360 more a year.

Deputy Prime Minister Tharman said: "With falling oil prices, pump prices after the petrol duty changes would remain lower than the levels in the last 2 1/2 years."

Along with the higher petrol duty, the road tax for petrol and petrol-CNG (compressed natural gas) cars will be reduced by 20 per cent from Aug 1 to July 31 next year. For a typical 1,600cc car using an intermediate grade of petrol, the rebate of $149 will offset about two-thirds of the increase in petrol duty.

The road tax for motorcycles using petrol will be reduced by 60 per cent.

Petrol and petrol-hybrid taxis and commercial vehicles will enjoy a 100 per cent rebate - in other words, they will not need to pay road tax for one year.

The one-year rebates are expected to cost the Government $144 million.

Meanwhile, the hike in petrol tariff is expected to yield about $177 million more a year.

Mr Roger Tan, 55, a deputy director of administration, estimates that he uses 200 litres of 95-octane petrol every month. With the tariff hike, he will be paying $360 more a year for petrol.

Still, he will not be driving any less, unless public transport becomes a more convenient option, he says.

Mr Tan, who lives in Bukit Timah and works at Nanyang Technological University, says: "I take 15min to reach the office by car, but if I take public transport, the journey is an hour or more."

The Straits Times / Top of The News         Pulished on Wednesday, Feb 25, 2015

By Adrian Lim                                             adrianl@sph.com.sg

Petrol duty up but there's a one-year road tax rebate


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