PSP urges fuel price regulation as diesel surge raises inflation and energy security concerns in Singapore
PSP has called for tighter regulation of petrol and diesel pricing, warning that sharp diesel price increases could drive inflation. The party also urged faster adoption of electric vehicles and expanded solar energy to strengthen Singapore’s long-term energy security.
- PSP warns diesel price surge may drive inflation due to heavy reliance on diesel transpor
- Calls for faster shift to electric vehicles and expanded solar energy targets
- Urges stricter regulation of petrol firms to ensure fair pricing linked to global oil trends
SINGAPORE: The Progress Singapore Party (PSP) has called for stronger regulation of fuel pricing, warning that recent diesel price surges could worsen inflationary pressures for households and businesses.
In the 14th issue of its newsletter The Palm, published on 30 March 2026, the party highlighted how fuel prices have climbed sharply since the onset of the Iran war.
Diesel prices now range between S$2.65 and S$3.93 per litre, overtaking petrol since mid-March.
Given that 85 per cent of Singapore’s goods vehicles rely on diesel, the party warned that rising fuel costs are likely to push up logistics and operational expenses, which may ultimately be passed on to consumers.
SMEs and transport sector under pressure
PSP expressed concern over the impact on small and medium-sized enterprises, noting that such businesses form the backbone of Singapore’s economy.
“SMEs will face mounting cost pressures that could translate into higher prices for everyday goods,” the party stated.
While the Government has halted new diesel car and taxi registrations from January 2025, PSP noted that the continued dependence on diesel-powered commercial transport leaves Singapore vulnerable to global energy shocks.
Push for electric transition and solar expansion
To address long-term risks, PSP urged the Government to accelerate the transition towards electric goods vehicles.
It called for additional incentives to help businesses retire diesel fleets, alongside higher road taxes on diesel vehicles to discourage their continued use.
The party also advocated expanding Singapore’s renewable energy ambitions.
It suggested raising the current target of 2 gigawatt-peak solar deployment by 2030 and introducing stronger incentives for homeowners to install rooftop solar panels, particularly on private properties.
Such measures, PSP argued, would reduce reliance on imported energy while cushioning Singapore against future price volatility.
Call for stricter fuel price regulation
PSP further argued that market forces alone are insufficient to ensure fair fuel pricing, pointing to the limited number of petrol operators in Singapore.
“It is not enough for the president of CASE… to call on petrol companies to quickly reflect global oil price drops,” the party said, adding that the petrol market is “arguably oligopolistic”.
The party called for stronger regulatory intervention, including recommended price adjustments or price ceilings tied to global oil movements, to ensure pump prices reflect international trends fairly and to prevent excessive profiteering during crises.
Questions over print correction orders under POFMA
PSP also questioned the requirement for The Online Citizen (TOC) and its editor Terry Xu to publish print correction notices in The Straits Times under the Protection from Online Falsehoods and Manipulation Act (POFMA), calling it an unprecedented move.
While acknowledging the Government’s explanation for issuing correction directions, PSP asked why print publication was necessary, especially when no POFMA action was taken against widely viewed AI-generated videos targeting Prime Minister Lawrence Wong.
The party noted Minister for Digital Development and Information Josephine Teo’s view that such videos were clearly fabricated, but questioned whether the public would always recognise falsehoods so easily, citing past examples raised by then-law Minister K Shanmugam.
PSP called for reforms to POFMA, proposing that its use be limited to deliberate disinformation campaigns and that decisions on falsehoods and corrections be placed under judicial oversight rather than ministerial authority.
