S'pore won't cut fuel duties across the board, but will have targeted support with S$500 CDC vouchers & other measures: Jeffrey Siow

In response to rising fuel prices, Singapore will be implementing new measures to support households, workers, and businesses, on top of what was previously announced in Budget 2026.

This is the government's approach, to provide direct support to those who are immediately impacted, said Acting Minister for Transport and Senior Minister of State for Finance Jeffrey Siow on Apr. 7.

No broad-based cuts

Speaking in Parliament, he noted that several Members of Parliament (MPs) have asked if the government will consider reducing fuel or diesel duties across the board.

Siow said that the government thought it would not be the right move, as it is too blunt and possibly regressive.

At the same time, they want to preserve the price signals for consumers to use energy more efficiently.

Singapore must also allow fuel prices to reflect market realities as a long-term economic strategy, Siow asserted.

"If prices are artificially suppressed, importers may choose to divert fuel where prices are higher, and over time, this can tighten supply and leave us worse off," he said.

By providing direct, targeted support instead, the government can channel more help to those who need it most.

Support for households

Rising fuel prices have not yet percolated into wider price increases across the economy, Siow said.

While highlighting that the volatility in the Middle East makes it still too early to update the projections of inflation in Singapore, he noted that the situation has amplified cost of living anxieties for Singaporeans.

To provide reassurance, the government will be bringing forward the disbursement of the S$500 CDC vouchers.

Households will receive them in June 2026, instead of January 2027 as previously planned in Budget 2026.

The Budget 2026 Cost-of-Living Special Payment will also be increased by S$200.

Eligible Singaporeans, who are expected to number at about 2.4 million, will get between S$400 and S$600 cash each in September.

Support for the domestic transport sector

The rise in fuel prices has had an immediate effect on the earnings of platform workers, private-hire car drivers, and taxi drivers, Siow said.

To provide relief, the government will be giving them S$200 cash from the end of April.

Only those who had been actively employed with a platform or taxi operator from December 2025 to February 2026 throughout are eligible.

Eligible platform workers must also have net earnings from platform work of more than S$500 per month during this period, excluding employment income.

Additionally, the government will provide temporary assistance to co-fund cost increases for certain essential bus services, such as those for school students, seniors, and persons with disabilities.

This support aims to enable these services to continue operating without disruption.

Support for businesses

In the face of higher energy and logistics costs, to help businesses manage cashflow, the government will increase the Corporate Income Tax rebate for the Year of Assessment 2026.

It will be raised to 50 per cent, up from 40 per cent as announced at Budget 2026, Siow announced.

The cash grant component will also be increased. Eligible companies with at least one local employee will receive S$2,000 instead of $1,500, and the total benefits cap for each company will be raised from S$30,000 to S$40,000.

This enhanced support will be disbursed from the end of April.

The government will also help companies build their long-term resilience, by encouraging adoption of energy-efficient practices.

Currently, companies in certain sectors can make use of the Energy Efficiency Grant (EEG) to invest in new, energy-efficient equipment.

To enable more companies to benefit from it now, the base tier of this grant will be expanded to all sectors.

The grant will also be extended for an additional year, to Mar. 31, 2028.

Additionally, the government will share the cost increases directly related to fuel costs, for critical government projects where any delays or stoppages would significantly affect the public interest.

This includes major government infrastructure projects, such as the Cross Island MRT line, or new HDB BTO projects.

More plans in the drawer

Petrol and diesel prices in Singapore have risen sharply in tandem with global oil prices, and they are likely to remain elevated for some time, Siow said.

He cautioned that while the impact has not yet fully filtered through for items like electricity or imported food, Singaporeans have to brace themselves, as it will come.

The new support package is a proactive response, through which the government will provide close to S$1 billion, on top of what has already been committed at Budget 2026.

The government also has more plans in the drawer, Siow added.

As events develop, the government can put them into action and do more if the situation calls for it.

"We will always make sure that no Singaporean is left to bear his or her burden alone," Siow said.

Top images from The Transport Enthusiast DC/Unsplash and MDDI's YouTube