SINGAPORE — Petrol duty rates were raised yesterday as part of the Government’s effort to promote a greener living environment, though motorists will be given a one-off road tax rebate to ease the impact of the move.

To encourage less car usage and reduce carbon emissions, duties for premium-grade petrol were raised, with immediate effect, by S$0.20 per litre to S$0.64 per litre, with a smaller hike of S$0.15 for intermediate-grade petrol, to S$0.56 per litre.

This is the first revision to petrol duty since 2003 and, with falling oil prices, pump prices after the duty hikes will remain lower than the levels in the past two-and-a-half years, said Finance Minister Tharman Shanmugaratnam in his Budget speech yesterday, noting that the change will yield about S$177 million a year.

The one-year road tax rebate is as follows: 20 per cent for cars, 60 per cent for motorcycles and 100 per cent for commercial vehicles using petrol. The rebate, which will cost the Government S$144 million, will offset about two-thirds of the impact of the petrol duty hike on car owners using intermediate-grade petrol, said Mr Tharman.

The Carbon Emissions-Based Vehicle Scheme, which offers rebates to those driving cars that are more fuel-efficient and emit less carbon, will also be extended for two years to June 30, 2017, said the minister, who added that refinements to the scheme would be announced during the Committee of Supply debate next month.

The Early Turnover Scheme will also be enhanced from August this year, to encourage the replacement of older commercial vehicles with greener models, he added. KELLY NG