The MMA study focused on the 3 main components of the import parity price (IPP) for regular unleaded petrol, premium unleaded petrol and diesel—namely, the refined fuel benchmark, the fuel quality premium and freight.
The study addressed 4 key questions:
- are Singapore prices the most appropriate to use?
- which are the appropriate price benchmarks to use?
- how is the quality premium determined?
- are the IPP calculations made by each of the refiner–marketers appropriate?