The Government is not about to reduce duty on petrol to help cushion rising pump prices.
The duty - 41 cents for every litre of standard grade petrol and 44 cents for the high-end stuff - is meant to promote public transport and curb excessive use of cars.
These objectives remain relevant, a Ministry of Finance spokesman told The Sunday Times when explaining why the ministry would not lower petrol duties.
Singapore's stand is in line with European finance ministers who last week rejected a French proposal to cut oil taxes to help consumers hit by high fuel prices.
The British charge the highest duty in Europe: For every litre of unleaded fuel, which currently retails in London for roughly S$3.20, no less than S$1.82 goes to the government in various taxes. Elsewhere in Europe, taxes invariably amount to half the price of fuel.
In Singapore, since February 2003, petrol duties have been levied on the volume of fuel purchased.
This means that rising pump prices do not increase the amount of petrol duty collected by the Government.
