The price of ship fuel in Singapore, one of the main centers of global trade, has risen above $1000 per ton. This price increase has been recorded for the first time since March 2023, reaching $1000.50 per ton on October 28. This price rise is influenced by the long-standing conflicts in Iran and related sanctions, which have increased fuel costs in the global commercial fleet.
Details of Fuel Prices and Their Impacts
According to published data, the price of very low sulfur fuel oil (VLSFO) reached $1019.50 per ton on Friday, although it decreased to $1003.50 on Monday. Additionally, the price of high sulfur fuel oil (HSFO) reached $898.50 per ton on Monday, and the price of marine diesel reached $1263.
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These figures indicate significant changes in the marine fuel market since the onset of attacks by Israel and the United States on Iran on February 28. Prior to these conflicts, the price of VLSFO in Singapore was $521.50 per ton, and this fuel has since increased by more than 92%.
Changes in Ship Fuel Costs
For a ship loading 3000 tons of VLSFO, the current fuel cost is approximately $3 million, which shows a significant increase from $1.56 million before the war began. This cost increase is particularly noticeable for ships equipped with scrubbers, which currently enjoy a significant advantage. The price difference between VLSFO and HSFO in Singapore has now reached $105 per ton, but the absolute cost of burning both types of fuel has increased dramatically.
The rise in fuel prices has also impacted alternative fuels. According to fuel pricing specialists, the price of LNG fuel in Singapore reached $1939 per ton on Monday, an increase of $74 compared to the previous week. The price of LNG in Rotterdam also rose by $97 to $1873, reflecting tighter gas markets in Europe and ongoing disruptions in the Middle East.
The price disparity of fuel in different regions is also significant. The price of VLSFO in Rotterdam was assessed at $763.50 per ton on Monday, which is nearly $240 less than in Singapore, while the price in Fujairah was reported at $991.50.
The Hormuz crisis has also complicated fuel supply, and fuel shortages and longer delivery times have forced ships to reconsider their fueling locations and timings.
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