Middle East Conflict Drives Singapore Fuel Prices to Record High
Singapore’s fuel prices have surged sharply to record highs, surpassing the previous peak recorded during the Ukraine crisis in 2022.
This increase has occurred amid global oil supply disruptions following the Iran conflict involving the United States and Israel that commenced in late February 2026. The impact of this conflict on Singapore’s petrol stations became apparent within days.
Disrupted crude oil supplies from the Middle East have been identified as the primary trigger for the price increases. The situation has been further exacerbated by uncertainty regarding global oil distribution routes following Iran’s announcement to close the Strait of Hormuz, a strategically important sea lane through which approximately one-fifth of global oil supplies typically pass.
Singapore imports its entire crude oil requirements, with the majority originating from the Middle East. It remains unclear whether alternative routes for oil shipment are currently available.
Caltex, for example, increased its 95-octane petrol price by 10 cents to SGD 3.45, equivalent to approximately IDR 45,838 per litre (based on an exchange rate of IDR 13,286 per SGD) on 13 March 2026. This figure exceeds the previous record of SGD 3.42, equivalent to approximately IDR 45,440 per litre, recorded in June 2022 after the European Union banned Russian oil imports.
The 95-octane petrol price has now increased by 57 cents, approximately IDR 7,573, compared to levels before the attack on Iran on 28 February 2026.
Price increases have also occurred for other petrol grades including 92-octane, 98-octane and premium variants, all of which have exceeded their peaks during the Ukraine war. Diesel prices have also surpassed the previous high of SGD 3.19, equivalent to approximately IDR 42,381 per litre, recorded in March 2022.
Petrol station operators have raised prices multiple times within a single day, tracking the movements of crude oil prices as the geopolitical situation in the Middle East continues to evolve.
The rapid price increases have prompted concerns among consumers. Some observers believe the price increases have occurred too quickly relative to potential declines in fuel stock in the market. “This is daylight robbery. This is not even new oil arriving from the conflict-affected area; this is still old oil,” said one taxi driver.
The rapid price increases at the upstream level, whilst price decreases often occur slowly, has led to suspicions that petrol station operators may be exploiting the situation ahead of a potential supply crisis.