Prices of petrol in Singapore have significantly increased due to the escalating conflict in the Middle East, which has led to the closure of a crucial channel for oil supplies with no resolution in sight.

Shell was the first to raise the price of the popular 95-octane fuel by four cents to $2.92 per litre on the morning of March 3.

Caltex and Esso followed suit, matching Shell's price increase later in the day, with Sinopec also raising their prices hours later.

Meanwhile, SPC remained the only operator to keep the price of 95-octane petrol unchanged at $2.87 throughout the day.

As of the morning of March 4, SPC had not increased prices of its offerings, according to the Price Kaki, a price tracker established by the Consumers Association of Singapore.

Currently, SPC offers the cheapest 92-octane petrol at $2.84, while Esso and Caltex have raised their prices to $2.88. Shell and Sinopec do not provide 92-octane petrol.

SPC also offers regular 98-octane petrol at the lowest rate of $3.38, with Esso and Sinopec pricing it at $3.42, and Shell having the highest price at $3.44.

For the premium 98-octane option, prices range from $3.55 at Sinopec to $3.66 at Shell.

Commercial fleet owners and taxi drivers are also affected, as diesel pump prices have risen in parallel. The highest posted price is $2.70 at Shell, Esso, and Caltex, with the lowest at $2.57 at SPC.

The global energy prices have surged due to the US-Israel conflict with Iran, leading to a halt in exports from the oil-rich region.

On March 2, an Iranian Revolutionary Guards official declared the closure of the critical Strait of Hormuz and threatened to attack any passing ship. This waterway typically handles a significant portion of the world's oil and gas.

Following Israeli and US strikes on Iran on March 3, Iran retaliated across the Gulf, expanding the conflict to Lebanon.

Singapore heavily relies on the Middle East for petroleum, refining and re-exporting a portion of its supply to countries in the Asia Pacific region.

Geopolitical developments can affect commodity prices due to concerns about disruptions in supply routes.

In March 2022, the Ukraine crisis led to several rounds of fuel price increases, with 95-octane petrol surpassing the $3 mark.

Subsequently, fuel pump prices reached new record highs, with the costliest grade of petrol exceeding $4 per litre for the first time.