SINGAPORE: As fuel fears spread across Southeast Asia, Singapore is holding steady, and its market conditions are stable despite disruptions in global oil flows.
Jeffrey Siow, acting transport minister of Singapore, said the fuel supply remains stable, with stockpiles intact and supply lines still open despite disruptions from the Middle East conflict.
Asia, which gets more than 80% of its energy supply from the Middle East, has been particularly hard-hit by the widening conflict. Several Southeast Asian economies, in particular, are feeling the global energy crisis keenly.
Singapore, however, is in a better position than others. While it imports fuel, it is a wealthy country with a strong currency as well as deep reserves.
The city-state is also fortunate in being located right beside the Strait of Malacca, which is one of the world’s busiest oil shipping lanes. Every day, a large volume of oil and fuel passes by Singapore, and the city-state has established itself as a fuel trading and redistribution hub.
His remarks echo earlier assurances from Tan See Leng that Singapore’s energy system remains secure, even as global markets turn volatile.
Mr Siow echoed this assurance on March 26. He said that Singapore’s fuel market is liquid, meaning that it is still functioning normally and that the city-state’s stockpiles are not being eroded. Importantly, he added that Singapore’s fuel supply lines are still open.
Amid an overall stable situation, the authorities will continue to monitor it closely, making sure that “everything remains okay,” and the Acting Minister also noted that air ticket prices have already seen an uptick. Additionally, drivers and platform delivery workers have already been given subsidies by operators.
“We are watching very closely to see whether there’s a need for the government to make an intervention later,” Siow says.
Singapore also has the advantage of being one of Asia’s largest oil refining centres, specifically at Jurong Island, which has large-scale storage, including the underground Jurong Rock Caverns. This has lessened Singapore’s dependence on imported oil and allows it to process and store large buffers against disruptions.
Countries and Southeast Asia are facing fuel shortages as reported in our previous report. Australia and Singapore have inked a mutual cooperation agreement as fuel pump runs dry.
However, as it has in many other countries, the price of fuel has gone up significantly, and logistics and shipping costs have also increased. Low-income families remain among the most vulnerable in society. /TISG
