In Parliament
Written Reply to Parliamentary Question on Cause of Drop in Volume of Singapore's Bunker Fuel Sales in First Quarter of 2022
9 May 2022
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Mr Dennis Tan Lip Fong asked the Minister for Transport whether the fall in the volume of Singapore's bunker fuel sales in the first quarter of 2022 was due to supply chain delays in shipping.
Reply by Minister for Transport S Iswaran:
1. Bunker sale volumes have declined by 12% from 12.8 million tonnes in the first quarter of 2021 to 11.3 million tonnes in the first quarter of 2022.
2. Based on industry feedback, this decline is driven by two factors: higher crude oil prices globally which reduce overall bunker demand and congestion at other ports around the world due to supply chain delays.
3. Congestion at overseas ports results in ships burning fuel while waiting to load or unload cargo. Some ships have decided to refuel while they wait at these upstream ports. They either choose not to refuel at Singapore or end up purchasing less fuel when they subsequently call at the Port of Singapore.