On Tuesday (February 16, 2021), Deputy Prime Minister Heng Swee Keat announced in the Budget 2021 speech that the government has decided to hike petrol duty rates with immediate effect. This change is in conjunction to addressing the needs of climate change by enacting behavioural tweaks to reduce carbon emission from our modes of transport.
| Type of Petrol | Raise in Petrol Duty Rates | Petrol Duties/litre |
| Premium petrol (98-Octane and above) | S$0.15 per litre | S$0.79 per litre |
| Intermediate petrol (92-Octane and 95-Octane) | S$0.10 per litre | S$0.66 per litre |
The last petrol duty rate correction was in 2015, where rates for premium grade petrol was raised by S$0.20 per litre while intermediate petrol was raised by S$0.15 per litre. Here is the list of road tax rebates (as of 24 February, 2021). These tax rebates will take in effect from 1 August 2021, and are applicable till 31 July, 2022.
| Type of vehicle | Rebates |
| Private Cars | 15% Road Tax Rebate for 1 Year |
| Taxi/Private Hire Cars | 15% Road Tax Rebate for 1 Year Additional S$360 of Petrol Duty Rebates disbursed over a span of 4 consecutive months for active drivers |
| Motorcycles (engine capacity below 200cc as of 16 February, 2021) | 60% Road Tax Rebate for 1 Year Additional S$80 of Petrol Duty Rebates for individual owners of motorcycles |
| Motorcycles (engine capacity from 201cc – 400cc as of 16 February, 2021) | 60% Road Tax Rebate for 1 Year Additional S$50 of Petrol Duty Rebates for individual owners of motorcycles |
| Commercial Vehicles (Lorry, Trucks, Vans, Buses etc.) | 100% Road Tax Rebate for 1 Year |
[information is accurate as of 28/2/2021].
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Even though the Government has provided a slew of road tax rebates to ease the transition of the new petrol prices for Singaporeans, most of these road tax rebates are for vehicle owners and drivers who rely heavily on their vehicles for their livelihood.
As for customers who use car rental services, this increase in prices of petrol could cause a significant rise in monthly rental costs. As such, we would like to backpack off of our article on “8 Fuel Efficient Tips For The Singapore Driver”, and “The Cost of Different Types of Petrol for Rental Cars in Singapore”. This article aims to provide you with some ways in which you, as a customer of a car rental company, can save on the cost of fuel in the long run. These tips are especially essential for our long term car rental customers, as these savings when accumulated over the long run, could amount to pretty substantial amounts potentially saved!
As drivers, please:
1. ENSURE THAT YOUR TYRES ARE PROPERLY INFLATED.
Similar to riding a bicycle with flat tyres, more energy is needed to push the bike forward. As such, poorly inflated tyres lead to poor fuel efficiency, as more fuel is needed to be used to push the car forward. By having the tyre inflated to the vehicle manufacturer’s recommended pressure, it can effectively reduce petrol consumption and improve gas mileage by up 0.6% on average, and up to 3% in some cases. The recommended PSI of your tyre can be found on the car door of your rental car, and it is good practice to measure the PSI of your tyre monthly to maintain its peak performance.
2. CLEAN YOUR AIR FILTERS REGULARLY
On the same topic of maximising the efficiency of our engine to reduce petrol consumption, it is a good habit to clean your air filters regularly to
3. BE AWARE OF YOUR DASHBOARD SIGNS
Dashboard signs can tell us a lot about the health of our rental car. It detects car parts which require some maintenance. Knowing what the signals tell us about the car health which would signal us to conduct a closer inspection on specific components of the car.
As a rule of thumb, it’s good to err on the side of caution as these may potentially be a safety concern to you and your passengers. Should you be unsure of whether the blinking dashboard signs are a cause for concern, do not hesitate to speak to our sales associates at BizLink Rent-A-Car to obtain more information about maintenance policies and repair works.
4. ADHERE TO SAFE DRIVING HABITS
Drastic acceleration and deceleration of our car can not only cause wear and tear of the tyres, but also cause danger to ourselves and our passengers. Accelerating gently could help in reducing the amount of fuel being burnt excessively, therein saving on petrol costs. Keeping driving speeds between 50km/h to 90km/h is a safe rule of thumb to follow, allowing the petrol to be used most optimally.
5. DETERMINE IF BUYING VS RENTING A CAR IS IDEAL FOR YOUR LIFESTYLE
Lastly, as individuals, it is also important to consider whether you really need a car for the long term, or during various occasions where car rental services may come in handy. As the government advocates for a car-lite society, one option would be to evaluate your personal use of a car should you intend to buy one, and if possible, consider the option of engaging car rental services in Singapore. To help you evaluate the option of deciding between buying a car, renting a car or adopting car-sharing services, here are some of our articles that can help guide you in the final decision:
- Long Term Car Rental vs Car Ownership
- Car Renting vs Car Sharing – What’s Similar & What’s Different?
