Singapore’s watchdog finds no collusion in fuels market

A study by the Competition Commission of Singapore (CCS) last year has concluded that although the risk of collusion exists in the fuels market, there is no evidence to show that oil companies are engaged in anti-competitive activities, a local newspaper reported. The study also found that the regulatory regime in Singapore is generally pro-competitive and petrol prices also appear to be competitive by global standards. The competition watchdog also noted that pricing transparency, achieved by open display of prices, “can be a double-edged sword.” The report said: “Transparent prices may be used by competitors as a means of exchanging price information, and such price signals can make it easier for competitors to move into price coordination, which is anti-competitive. If a cartel exists in the market, it is easier for cartel members to monitor one another’s compliance if prices are openly broadcast.” The commission said that while listed pump prices are uniform in the island-state, effective prices vary widely according to promotions and loyalty programs. The study also found little evidence of pump prices rising faster and more when oil prices rise, or falling slower and less when they fall. “Based on current information, there does not appear to be a case for the CCS to intervene,” the study said.