Business
SPC secures iconic Esso petrol station at S$500,540 monthly rental
Singapore Petroleum Company Ltd (SPC) has clinched the lease for a plot of land in Tampines at a hefty monthly rental of S$500,540. SPC’s acquisition displaces the renowned Esso petrol station, which served as the backdrop for the popular 90s local sitcom “Don’t Worry Be Happy.”
Last month (22 Aug), the Singapore Land Authority (SLA) announced the tender results for a 21,441.89 sqft plot intended for petrol station operations.
This land, located in Tampines at 9 Tampines Ave 7, once served as the backdrop for the popular 90s local sitcom “Don’t Worry Be Happy.”
Previously, ExxonMobil leased the plot for over 30 years.
The tender was secured by Singapore Petroleum Company Ltd (SPC), a wholly-owned subsidiary of PetroChina International (Singapore) Pte. Ltd. This company is a listed entity of the state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It holds the distinction of being Asia’s largest oil and gas producer.
SPC’s winning bid was S$500,540 per month, totalling approximately S$54 million over the 9-year lease period. In contrast, ExxonMobil placed a bid of S$376,000.
To provide some context, SPC needs to generate at least $16,685 daily just to meet the lease expenses owed to the SLA.
Considering these steep rental charges, it’s understandable why, even during periods of significant oil price drops, Singaporean oil companies might be hesitant to significantly reduce pump prices.
Regardless of the volatility in oil prices, SLA continues to collect high rentals from the various oil companies operating within Singapore.
In the end, these substantial rental fees are inevitably passed down to Singaporean consumers, reflected in higher pump prices.
However, the SLA also leases out seemingly “cheap market-valued” plots for residential purposes.
For instance, the Law Minister, K Shanmugam, rents a 249,371 sqft plot for just S$26,500 a month. This land area is more than ten times larger than SPC’s plot, yet the cost is over 18 times less.
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Obviously this rubbish article and commenters here don’t even understand the petroleum business model. Ever heard of petroleum company goes into financial difficulties? And open up your eyes to see why kiosk are found at almost every corner of Singapore and why so many bidders for a single plot of land? No need to worry about their cost, as business is so lucrative that even a kiosk with less car visit also make profit. Trying to create an agenda on a wrong tree.
Shitty article obviously trying to stir smelly shit of brainless emotional people. Open bidding system and bidder bid at market rate to run a lucrative petroleum business. Some more can rope in b&w bungalow rental which is a totally different ball game. Fuck lah, control rental will only let the rich vendor to land a bigger profit margin, why such brainless suggestion huh?
Don’t understand the point of this article. The bid is open competitive bid. The qns is why the few petrol companies bid so high to get themselves in the situation, and we as consumers need to pay for their foolishness. No one pointed guns to their heads to bid the amount they put in. Conversely if another bid that has no competitors, no one in their logical mind would put in crazy bids either. So not much relation to the point that the article is trying to throw shade at towards the end.
Hmmmm $500,540 a month, so their daily takings have to be at lease 500,540 divided by 30 days= $16,684.66?
In order to make profits, the daily takings have to be more than $16,684.66?
What do you think?
The Pappy ‘s controlled establishments are using the various government outfits to run SG like a huge profitable corporation through monopolistic wholly own entities the like of SLA,in collaboration with HDB, Government owned privatized hospital groups, Government Linked Companies ,LTA,MOM etc💰💰💰 generating enormous revenue through taxation, levies and subsidized charges without any care for the ensuing increase in the cost of living that is ultimately borne by Singapore 🇸🇬 citizens. The Singapore economy ,with exports and manufacturing output consecutively falling the last 11months ,and inflation hovering above 4%,would likely be confronted with stagflation in the not too distant future.Under such… Read more »
Are the 2 clowns renting the B & W palaces paying such rents for their premise?😆😆😆🤣😆😆😆😆😆😆
“…For instance, the Law Minister, K Shanmugam, rents a 249,371 sqft plot for just S$26,500 a month. This land area is more than ten times larger than SPC’s plot, yet the cost is over 18 times less….” ————– Yet HDB/MND still maintains that singles are NOT allowed to buy anything bigger than 5-rm resale flats or 2-rm BTO because 1 person occupying 35-40 sqm (376-430sqft) is wasteful in land-scarce SG. So does Shanmugan’s household consists of at least 580 members to reside in a 249,371 sqft plot so as not to be wasteful? 1 set of rules for the commoners,… Read more »
The PAP govt. fails to understand that the tenancy of State owned properties should be negotiated to offer goods and services at a controlled price to the resident population. In allowing a higher bid the increase to recover cost will be, as stated by Terry, from the resident population. SLA comes under the Yishun MP. This shows that his incompetence and lack of knowledge in State owned properties to benefit citizens will add to financial strain and loss to the population and commercial enterprises. Sometimes getting more is not a win if you can get yourself to look at the… Read more »
With little or no growth in both SG export and manufacturing sectors,it appears that our million dollar leaders have apparently ran of effective ideas to do the right thing to address this predicament.Instead these idiots are choosing the easy way out by resorting to rent seeking activities in the like of getting good revenue from competitive bids from businesses and developers to secure leases from SLA,and jacking up prices of all necessities to generate more revenue at the expense of an even higher cost of living presently endured by SG citizens in order to justify their existence.So sad 😭😭😭 to… Read more »
So this (SPC) must be Singapore Empire Oil pumping station? No?