Petrol Discounts in Singapore

[Lala81]

On 1/19/2025 at 5:48 PM, Dafansu said:

3 cents different, one tank of 45l only $1.35. After add in your applicable petrol discount it may not be even be a dollar. 

Sure.

To me I look at it this way. Pricing psychology 101. 

If 95 is so much better than 92 that the consumer can feel it 100% of the time, then logically speaking the Retailer would price 95 significantly more expensive than 92. Like maybe 8 cents more or 10 cents more. Inferior product vs Better product.

But the margin is so small. So why is that?
Most likely the reason I price 92 so close to 95, would be I want the consumer to take 95 for that extra 3 cents margin that I get for minimal effort on my own.
Cos i know the logic you stated will apply in the minds to most people. More expensive must be better. Small difference then take it up.

I've been driving for 17 years. So only over the last 7 years I've pumped 92 (cos of the oil shock when Brent crude was 140 usd per barrel). 

Anchor/Framing bias is just natural to make easy decisions. 

 

There can be other reasons to price differently. But this one is definitely one of the major considerations when they price the petrol.

 

 

 

 

 

Edited January 19 by Lala81

[Volvobrick]

On 1/19/2025 at 6:11 PM, Lala81 said:

Sure.

To me I look at it this way. Pricing psychology 101. 

If 95 is so much better than 92 that the consumer can feel it 100% of the time, then logically speaking the Retailer would price 95 significantly more expensive than 92. Like maybe 8 cents more or 10 cents more. Inferior product vs Better product.

But the margin is so small. So why is that?
Most likely the reason I price 92 so close to 95, would be I want the consumer to take 95 for that extra 3 cents margin that I get for minimal effort on my own.
Cos i know the logic you stated will apply in the minds to most people. More expensive must be better. Small difference then take it up.

I've been driving for 17 years. So only over the last 7 years I've pumped 92 (cos of the oil shock when Brent crude was 140 usd per barrel). 

Anchor/Framing bias is just natural to make easy decisions. 

 

There can be other reasons to price differently. But this one is definitely one of the major considerations when they price the petrol.

 

 

 

 

 

Well said. To increase the octane of petrol costs virtually nothing (add ethanol/methanol etc).  Just pricing differential to get people to upsize. Like Cat A Model 3 or Seal. They cost as much to make. 

[Volvobrick]

On 1/19/2025 at 5:49 PM, Dafansu said:

a lot people feel it's inferior, feels some lag when accelerating for my car. Now I use Shell. 

I use SPC 95 for many years. Few cars jiak me on the road. So I guess it's good enough. 

Edited January 19 by Volvobrick

[ER-3682]

On 1/19/2025 at 6:30 PM, Volvobrick said:

Well said. To increase the octane of petrol costs virtually nothing (add ethanol/methanol etc).  Just pricing differential to get people to upsize. Like Cat A Model 3 or Seal. They cost as much to make. 

Duty Tax is different between 95 & 98.

[Dafansu]

On 1/19/2025 at 6:32 PM, Volvobrick said:

I use SPC 95 for many years. Few cars jiak me on the road. So I guess it's good enough. 

i assume u are driving a volvo, should be good enough unless u want upgrade higher end like Ferrari, Porsche  

[Volvobrick]

On 1/19/2025 at 7:17 PM, ER-3682 said:

Duty Tax is different between 95 & 98.

Of course I know. We were talking about 92 and 95.

[Dafansu]

On 1/19/2025 at 6:11 PM, Lala81 said:

Sure.

To me I look at it this way. Pricing psychology 101. 

If 95 is so much better than 92 that the consumer can feel it 100% of the time, then logically speaking the Retailer would price 95 significantly more expensive than 92. Like maybe 8 cents more or 10 cents more. Inferior product vs Better product.

But the margin is so small. So why is that?
Most likely the reason I price 92 so close to 95, would be I want the consumer to take 95 for that extra 3 cents margin that I get for minimal effort on my own.
Cos i know the logic you stated will apply in the minds to most people. More expensive must be better. Small difference then take it up.

I've been driving for 17 years. So only over the last 7 years I've pumped 92 (cos of the oil shock when Brent crude was 140 usd per barrel). 

Anchor/Framing bias is just natural to make easy decisions. 

 

There can be other reasons to price differently. But this one is definitely one of the major considerations when they price the petrol.

 

 

 

 

 

Pump whatever u deem fit for your car or the minimum recommended Ron by your manufacturer. In fact other than price which is very minimal after factoring the discount, there may be other considerations for driver choice of Ron. For my car the minimum will be 95 and it's a bread and butter car, nothing high end or expensive. There must be a reason why manufacturer will recommend at least this grade.

Places in Malaysia have also removed 92 many years back, a good reading article to understand more
https://www.malaysianow.com/news/2024/06/29/debate-swirls-on-merits-of-ron92-comeback-amid-concern-over-impending-petrol-hike

[ER-3682]

On 1/19/2025 at 6:30 PM, Volvobrick said:

Well said. To increase the octane of petrol costs virtually nothing (add ethanol/methanol etc).  Just pricing differential to get people to upsize. Like Cat A Model 3 or Seal. They cost as much to make. 

Then just wonder why V-Power & their 98.?22 Cts Difference.?Shell want better Profit.?

Edited January 19 by ER-3682

[Lala81]

On 1/19/2025 at 7:38 PM, Dafansu said:

Pump whatever u deem fit for your car or the minimum recommended Ron by your manufacturer. In fact other than price which is very minimal after factoring the discount, there may be other considerations for driver choice of Ron. For my car the minimum will be 95 and it's a bread and butter car, nothing high end or expensive. There must be a reason why manufacturer will recommend at least this grade.

Places in Malaysia have also removed 92 many years back, a good reading article to understand more
https://www.malaysianow.com/news/2024/06/29/debate-swirls-on-merits-of-ron92-comeback-amid-concern-over-impending-petrol-hike

Lol my accord's 2.0 engine was an old engine which was from the previous accord.
In USA where there are the most accords around, most gas pumps sell octane 87 AKI. 91 AKI is for the premium cars. Some of the ulu areas don't even have premium gas.

I pump SPC cos its convenient for me and also the cheapest with CC.
So i can only say between 95 and 92 for SPC, I've not noticed any difference. 

 

[Lala81]

On 1/19/2025 at 7:58 PM, ER-3682 said:

Then just wonder why V-Power & their 98.?22 Cts Difference.?Shell want better Profit.?

pay for their advertising costs? 
Also got additives. 

Shell always lot of ads one right. What v-power. Fuelsave etc.

Formula 1 etc.

SPC is for commoners to pump gas. 

 

Edited January 19 by Lala81

[Mkl22]

I can feel the diff on small engine capacity cars. With big cc and forced induction. No diff for whatever brands of petrol. 
worst was spec diesel crappiest of all. Lots of black smoke and no power

also put a bottle of redline injection cleaner in after 100k km. Can feel the response return especially on the high rpm. Best $20 spent on the car. 

Edited January 19 by Mkl22

[107fan]

On 1/19/2025 at 6:11 PM, Lala81 said:

Sure.

To me I look at it this way. Pricing psychology 101. 

If 95 is so much better than 92 that the consumer can feel it 100% of the time, then logically speaking the Retailer would price 95 significantly more expensive than 92. Like maybe 8 cents more or 10 cents more. Inferior product vs Better product.

But the margin is so small. So why is that?
Most likely the reason I price 92 so close to 95, would be I want the consumer to take 95 for that extra 3 cents margin that I get for minimal effort on my own.
Cos i know the logic you stated will apply in the minds to most people. More expensive must be better. Small difference then take it up.

I've been driving for 17 years. So only over the last 7 years I've pumped 92 (cos of the oil shock when Brent crude was 140 usd per barrel). 

Anchor/Framing bias is just natural to make easy decisions. 

 

There can be other reasons to price differently. But this one is definitely one of the major considerations when they price the petrol.

 

 

 

 

 

So i guess by this logic the quality of 98 should be significantly higher than 95? Hope this means it's bang for buck.

The low and similar pricing of 92 and 95 might also have a public policy reason, if they vary significantly, the masses who pump them will feel unjust against the govt's policy.

[Volvobrick]

On 1/19/2025 at 11:19 PM, 107fan said:

So i guess by this logic the quality of 98 should be significantly higher than 95? Hope this means it's bang for buck.

The low and similar pricing of 92 and 95 might also have a public policy reason, if they vary significantly, the masses who pump them will feel unjust against the govt's policy.

Pricings are set by private companies, not the gahmen. If your car needs only 95, pumping 98 won't make it better. Higher Octane is needed for higher compression engines to prevent knocking. Don't believe in those marketing BS. Like drinking Redbull making you faster in 2.4.

 

[107fan]

On 1/19/2025 at 11:34 PM, Volvobrick said:

Pricings are set by private companies, not the gahmen. If your car needs only 95, pumping 98 won't make it better. Higher Octane is needed for higher compression engines to prevent knocking. Don't believe in those marketing BS. Like drinking Redbull making you faster in 2.4.

 

I am pretty sure the govt slaps a tariff on it and that's why petrol in SG are priced this way...

[13177]

On 1/19/2025 at 11:34 PM, Volvobrick said:

Pricings are set by private companies, not the gahmen. If your car needs only 95, pumping 98 won't make it better. Higher Octane is needed for higher compression engines to prevent knocking. Don't believe in those marketing BS. Like drinking Redbull making you faster in 2.4.

 

Last time those who drink redbull, their 2.4 timing really seems like better le. Lol. I no drink cause don’t like the taste.

[Battledome64]

On 1/20/2025 at 1:37 AM, 107fan said:

I am pretty sure the govt slaps a tariff on it and that's why petrol in SG are priced this way...

Yes, if I am not wrong petrol tax was increased from 10 cents to 79 cents per liter in 2021. Going by percentage change that’s more than double. 

[ER-3682]

On 1/20/2025 at 6:14 AM, 13177 said:

Last time those who drink redbull, their 2.4 timing really seems like better le. Lol. I no drink cause don’t like the taste.

Flintstone's Fred,no drink Redbull also can powered a Car with Barefoot.

[ER-3682]

On 1/19/2025 at 11:34 PM, Volvobrick said:

Pricings are set by private companies, not the gahmen. If your car needs only 95, pumping 98 won't make it better. Higher Octane is needed for higher compression engines to prevent knocking. Don't believe in those marketing BS. Like drinking Redbull making you faster in 2.4.

 

Drink Redbull won't make you run faster,it will make the Heart Beat Faster,also ''Go''[Die] faster.