Singapore raises road fuel taxes, adds support for EVs

Market: Emissions, Oil products
16/02/21

Singapore has raised gasoline taxes by more than 20pc and announced new incentives for electric vehicles (EVs) in its 2021 budget.

Taxes on premium gasoline, with a retail octane number (Ron) above 97, have been increased by 23pc or S$0.15/litre (11¢/l) to S$0.79/l. Duties on 90-97 Ron gasoline rise by S$0.10/l to S$0.66/l.

The tax increases, the first for six years, take effect immediately. Rebates will be in place for a year starting from August to cushion the impact.

Singapore, a major oil refining hub, is also one of the world's most expensive places to own a vehicle as the government seeks to limit congestion on the city-state's roads and encourage the use of public transport.

The budget also introduced more tax breaks and rebates for EVs, as well as S$30mn in new funding for the sector over the next five years.

Singapore's carbon tax, which is currently set at S$5/t of greenhouse gas emissions, will be reviewed after 2023 in line with a planned increase to S$10-15/t by 2030, deputy prime minister Heng Swee Keat said.

By Kevin Foster

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