No evidence of anti-competitive behaviour by petrol firms in S'pore: Tan Wu Meng
Tan Wu Meng in Parliament on Tuesday -
" When crude oil is refined, it separates into different products in roughly fixed proportions, so changes in demand for some refined products can affect others, he said in response to a question from Member of Parliament Ang Wei Neng.
For instance, demand for jet fuel has fallen dramatically due to global travel restrictions, meaning that refineries must store the excess jet fuel supply, reduce the price so as to sell more, or reduce the production of jet fuel.
Storing excess supply requires space, and reducing the price will not help if jets are simply not flying. If refineries decide to reduce the production of jet fuel, this will also reduce the production of other refined products, including retail petrol. The lower supply of retail petrol would thus exert upward pressure on prices, said Dr Tan."
I don't operate a million dollar company, I am just a sales person in a small local company with only 5-person.
When I ask my supplier unit rate, they give me a guide.
10~100-unit usd-10.oo
101 ~ 1000-unit usd-8.00
1000 ~ 5000-unit ...bla bla
why ? because there are competition between factories (many player/supplier in the market)
But why must I transfer the discount into my selling price to my customer ?
because I have many competitor whom is wooing my customer.
Tan Wu Meng in Parliament on Tuesday -
" When crude oil is refined, it separates into different products in roughly fixed proportions, so changes in demand for some refined products can affect others, he said in response to a question from Member of Parliament Ang Wei Neng.
For instance, demand for jet fuel has fallen dramatically due to global travel restrictions, meaning that refineries must store the excess jet fuel supply, reduce the price so as to sell more, or reduce the production of jet fuel.
Storing excess supply requires space, and reducing the price will not help if jets are simply not flying. If refineries decide to reduce the production of jet fuel, this will also reduce the production of other refined products, including retail petrol. The lower supply of retail petrol would thus exert upward pressure on prices, said Dr Tan."
I don't operate a million dollar company, I am just a sales person in a small local company with only 5-person.
When I ask my supplier unit rate, they give me a guide.
10~100-unit usd-10.oo
101 ~ 1000-unit usd-8.00
1000 ~ 5000-unit ...bla bla
why ? because there are competition between factories (many player/supplier in the market)
But why must I transfer the discount into my selling price to my customer ?
because I have many competitor whom is wooing my customer.