Retail Petrol Market Inquiry: CCS Recommends Improving Price Transparency and Raising Consumer Awareness on Octane Grades
The Competition Commission of Singapore (“CCS”) has released its findings from its inquiry into the retail petrol market in Singapore to understand the pricing decisions of petrol retailers and purchasing habits of consumers.Although the information available to CCS does not indicate collusion between the petrol retailers in Singapore, there is scope to increase transparency of effective retail petrol prices to encourage competition.
- There is price differentiation between petrol retailers through the use of discounts.
- There is high brand loyalty among consumers.
- Greater transparency of effective retail prices will help consumers make more informed choice and encourage a more competitive market.
- There should be greater awareness among motorists about using the correct octane grades that optimise engine performance.
Based on these findings, CCS is of the view that the development of a web portal and/or mobile application showing a comparison on petrol prices and discounts will further empower consumers to make more informed purchasing decisions and encourage more transparent competition amongst the petrol retailers, given the potential entry of a fifth petrol retailer in Singapore. CCS is exploring the development of the web portal and/or mobile application with relevant stakeholders.