Budget 2015: Petrol duty rates to be increased to encourage less car usage

SINGAPORE — To encourage less car usage and reduce carbon emissions, petrol duty rates will be increased for the first time since 2003. From today (Feb 23), duty rates for premium grade petrol will be increased by S$0.20 per litre and intermediate grade petrol by S$0.15 per litre, Deputy Prime Minister and Finance Minister Mr Tharman Shanmugaratnam announced today. This move will yield about S$177 million a year.

“With falling oil prices, pump prices after the petrol duty changes will remain lower than the levels in the last two and a half years,” Mr Tharman said.

A one-year road tax rebate — 20 per cent for cars, 60 per cent for motorcycles and 100 per cent for commercial vehicles using petrol — will be provided to ease the transition to the higher duties. The rebate will offset about two-thirds of the impact of the petrol duty hike on car-owners using intermediate grade petrol. The rebate will cost the Government S$144 million.

The Carbon Emissions-Based Vehicle Scheme, which was set to end in July 1 this year, will be extended for two years to June 30, 2017. The scheme was introduced in 2013 to encourage the take-up of carbon-efficient vehicles.

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