Jump to content

Competition keen in Singapore, says ExxonMobil


Ahyoo2002
 Share

Recommended Posts

in today's ST forum:

 

March 27, 2008

PUMP PRICE HIKES

Competition keen in Singapore, says ExxonMobil

 

WE REFER to the letters, 'Pump prices - eight hikes in eight months' by Mr Benjamin Tay last Thursday and 'Price hikes: Oil firms should speak up ' by Ms Lim Li Ching on Monday regarding pump prices. We fully understand the concern motorists are feeling over high pump prices. We have spoken up in the past and take this opportunity to clarify the points raised in the letters.

 

Pump prices are affected by many factors. A key component which makes up about 50 per cent of pump prices is the cost of petrol and diesel. This cost, known as wholesale fuel prices, is traded internationally at commodity markets and is not set by ExxonMobil. Like other internationally traded commodities, wholesale fuel prices are the result of the actions of thousands of buyers and sellers operating in a global marketplace to efficiently allocate available supplies for competing uses. The same applies to crude oil prices.

 

Our refinery in Singapore purchases over 90 per cent of the crude oil it processes from third parties and is subject to market fluctuations. Wholesale fuel prices, although a key component, are not the only determinant of retail pump prices. The other factors are taxes and duties which make up about 30 per cent of pump prices, and the remaining 20 per cent comes from land, operating costs and margins.

 

We operate in an intensely competitive retail market in Singapore. [hur] Competition is beyond pricing and we also compete by investing heavily in our Smiles loyalty programme and recently completed our alliance project with NTUC FairPrice, bringing more value and convenience to our customers. High prices raise our awareness of the importance of saving energy and changing our behaviour.

 

Some good ways for motorists to improve fuel efficiency include avoiding aggressive driving; planning your trips in advance; and inflating your cars' tyres to the right pressure. Switching to a fuel grade recommended by your cars' manufacturers also helps. We have noticed that more than 10 per cent of our customers have switched from 98 octane petrol to the lower 95 octane petrol over the past two years. Our website at www.exxonmobil.com.sg has more energy-saving tips.

 

Lastly, we wish to state categorically that we at ExxonMobil support free and fair competition. [hur] As a company policy worldwide, we do not discuss prices nor market segmentation with competitors. We also do not subscribe to nor support any anti-competitive activities.

 

xxx

Singapore Retail Sales Manager

ExxonMobil Asia Pacific Pte Ltd

↡ Advertisement
Link to post
Share on other sites

We operate in an intensely competitive retail market in Singapore

 

what's wrong with this sentence? They compete to increase prices wat.

 

 

 

we at ExxonMobil support free and fair competition

 

unfair meh? caltex increase we also increase loh. super fair. NTUC fairprice

Link to post
Share on other sites

Neutral Newbie

The same old excuses were used in previous so-called explanations. So one good way to counter "intensely competitive retail market" is to raise prices?!

 

What's "support free and fair competition" all about when the players raise fuel prices almost in tandem?! [shakehead]

Link to post
Share on other sites

The other factors are taxes and duties which make up about 30 per cent of pump prices

 

is that one of the highest in the world? if it is, then cannot entirely blame the cartel, so u know what to do lah when the next GE come [sly]

Edited by Cumzilla
Link to post
Share on other sites

Neutral Newbie

sorry if it sounds offensive but I feel that the spokesperson is not addressing the issue at all. Its just like a big crap of bs.

 

hmm and it looks like there is also finger pointing to others like taxes and land etc...

 

why don't they open up on their pricing to allow greater transparency..

 

on the point of them being fair... yeah sure, they don't discuss price... just follow suit in raising price together... of course no need to discuss...

 

just my frustrations...

Link to post
Share on other sites

No cartel fixing lah.

 

Same thing for Bread. My neighbourhood cake/bread shop also raise their bread price to match industry standard. What used to be ~$0.7 for a simple char-siew bun, now becomes $1.2.

 

Ok...serious point now.

 

The question is would you guys specifically hunt down to pump a particular petrol brand if its just 2cents cheaper?

Seriously, I won't.

 

Since the oil companies boss are also drivers, they know that if they were 2 cents lower than competitors, they will simply lose more then if they had followed with the rest.

Edited by Leepee
Link to post
Share on other sites

if 2 cents cheaper, i would go pump their petrol, provided it apply to all their stations, and not 1 or 2 ulu locations only and i hate queuing up also

Link to post
Share on other sites

Neutral Newbie

It a bloody Copy and Paste format that Ms Lim use thru out any of her public reply.

 

Ms Lim...change our reply format once awhile...Cooking the same soup in a difference pot always.

 

 

Free & Fair competition...pui!! more like Free and Far competition, FREE to increase as they like and FAR for drivers to catch up with their increase.

Link to post
Share on other sites

If 1-2cents cheaper is really a drivign force.

Why was SPC not a big favourite, some time back when their price were indeed lower?

Link to post
Share on other sites

HAHAHAHAHAHAHAHAHA....

 

Biggest joke of 2008!! If competition is indeed keen, they would have undercut each other to vie for business...and not all one by one follow suit to increase price to the same exact level after the first had done so..this guy thinks we consumers are little children is it?? [laugh]

Link to post
Share on other sites

Wow...I do hope Benjamin Tay replies to this tripe statement from ExxonMobil.

 

They must really think we are idiots...

 

I agree man...they are taking us like idiot! [furious][furious][furious] I'd rather they keep their mouth shut than make such an idiotic statement!

↡ Advertisement
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...