SINGAPORE: A stark warning from one of the world’s largest airlines is fuelling fresh anxiety over rising costs with some Singaporeans saying they are already struggling to keep up.
United Airlines CEO Scott Kirby has told staff the company is preparing for a scenario where oil could surge to US$175 per barrel, as global prices climb amid the ongoing conflict involving Iran. Singapore Airlines announced that it may levy a surcharge if oil prices continue to persist.
The concern is not just about airlines. For many in Singapore, the pressure is already being felt. PM Wong has assured Singaporeans that more financial assistance will be given to Singaporeans, if needed.
While Singapore has built up months of fuel reserves, putting it in a stronger position than many Asian countries in the short term. However, the bigger risk is not an immediate shortage but a prolonged global disruption, which could still drive sustained price increases and economic strain.
Prices rising fast — and staying high?
Oil markets have moved sharply in recent weeks. Brent crude, which hovered around US$70 per barrel before the conflict, has surged to as high as US$119.50. Analysts now warn that prices could remain elevated for longer, especially if supply disruptions persist.
Rising fuel prices driven by global conflict are already hitting Singaporeans, with transport disruptions, higher pump prices (above S$3 per litre), and travel cancellations affecting daily life and regional trips. Many say these developments show how “global events really hit local pockets,” as even routine plans like Johor Bahru getaways and overseas travel become more costly and uncertain.
The economic strain is not theoretical. Several Singaporeans have described a growing sense of fatigue and anxiety tied to rising expenses and stagnant savings.
Some say they are working hard but seeing little progress financially, while others pointed to the psychological toll of constantly trying to keep up in an increasingly expensive environment. The possibility of sustained high oil prices only adds to these concerns, as it could push up costs across multiple sectors.
In response to rising prices, the US government has introduced temporary measures aimed at increasing supply.
A 30-day licence will allow Iranian oil already loaded onto ships to enter the market, while certain restrictions on Russian oil shipments have also been eased. The move is designed to prevent a sharp spike in prices, but the relief may be short-lived, with the measures set to expire in April.
Markets fall as inflation fears return
Financial markets are already reacting, and US stocks fell again this week, with the S&P 500 dropping 1.5%, marking its fourth straight weekly decline. Bond yields have also risen, reflecting renewed concerns about inflation.
Higher oil prices can make goods and services more expensive, limiting the ability of central banks to cut interest rates and provide relief to the economy.
For now, companies like United Airlines are preparing for the worst. But for many Singaporeans, the reality on the ground already feels difficult.
Rising fuel prices driven by Middle East tensions are putting pressure on taxi and ride-hailing drivers in Singapore, with petrol costs up about 20% and operators introducing surcharges and support measures. As a result, experts say commuters should expect higher fares, as companies pass on increasing costs to stay sustainable.
If oil prices continue to rise or stay elevated for longer, the gap between wages and living costs could widen further, intensifying both financial strain and everyday stress. The bigger question may no longer be whether costs will rise, but how much more people can absorb.
Source: Associated Press
