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Budget 2021: Petrol duty increases by up to 15 cents per litre
SINGAPORE – Motorists have to pay more when refuelling their petrol tanks as the government has raised petrol duties with immediate effect.
In his Budget speech in Parliament on Tuesday (16 February), Deputy Prime Minister and Finance Minister Heng Swee Keat said that the duty for premium grade petrol (from 98-octane) is raised by 15 cents per litre, while the duty for the intermediate grade (92-octane and 95-octane) is increased by 10 cents a litre.
The higher petrol duties are to encourage Singaporeans to reduce their vehicle usage – hence, reducing emissions from internal combustion engine (ICE) vehicles – as part of the Republic's steps towards a more sustainable future. This measure is taken alongside the increasing support for the adoption of electric vehicles.
The move comes after previous restructuring of diesel taxes towards a usage-based tax system has brought about good effect, according to Heng. "Usage-based tax has helped shape consumer behaviour towards a more efficient use of fuel or environmentally friendly alternatives," he said.
Road tax rebates
Support measures will be given to help motorists with the changes, especially those who use their vehicles to earn a livelihood.
Motorcyclists will be given a 60 per cent road tax rebate for one year, and up to $80 of additional rebate in cash, depending on the engine capacity of their motorcycles.
Taxi and private-hire drivers using petrol vehicles will be given a 15 per cent road tax rebate for a year. They will also receive $360 of petrol duty rebate, to be given out over four months.
Those driving goods vehicles and buses will be given a one-year 100 per cent tax rebate.
Drivers of petrol cars will be given a one-year 15 per cent road tax rebate.
All road tax rebates will take effect from 1 August while the additional petrol duty rebates will be introduced by the middle of the year.
Most of the expected revenue increase from petrol duties will be given out through the offsets, Heng said, and it is expected to cost around $113 million.
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