Singapore's Bunker Sales Rise on Strong Demand in Jan

Why It Matters

The divergence highlights a short‑term resurgence of cheap conventional fuels while green‑fuel adoption stalls, reshaping investment priorities in the maritime energy market.

Key Takeaways

• Bunker sales rose 17% YoY to 5.23 Mt.
• Vessel arrivals increased 12% YoY, 12,031 ships.
• HSFO sales hit record 2.16 Mt, up 30% YoY.
• Alternative fuel consumption fell 29% YoY.
• LNG bunkering up 30% YoY, despite monthly dip.

Pulse Analysis

Singapore remains the world’s pre‑eminent bunkering hub, and January’s data underscore its resilience amid volatile fuel markets. A 12% surge in vessel calls lifted total bunker sales to 5.23 million tonnes, with conventional fuels accounting for 98% of consumption. HSFO, buoyed by its lower price point, set a post‑2020 record, while VLSFO and LSMGO also recorded double‑digit growth. This uptick reflects both the influx of new‑build LNG‑dual‑fuel ships and the continued relevance of traditional fuel grades in a cost‑sensitive shipping environment.

Conversely, the alternative‑fuel segment is losing momentum. Bio‑fuel blends, which once comprised over half of the 103,100 tonnes of green bunkers, slipped 44% year‑on‑year, and overall alternative‑fuel bunkering dropped 29%. The primary catalyst is the postponement of the IMO’s Net‑Zero Framework to October 2025, which has softened regulatory pressure and eroded profit margins for bio‑fuel blends. Ship owners are therefore deferring green‑fuel purchases, awaiting clearer policy signals from upcoming MEPC 84 discussions.

Looking ahead, LNG appears poised to fill the gap between conventional and green fuels. Bunkering volumes rose 30% year‑on‑year, driven by a pipeline of LNG‑dual‑fuel new‑builds entering service. If the IMO accelerates its decarbonisation agenda, investors may see a rapid shift toward LNG and bio‑LNG, but in the interim, conventional fuels will likely dominate bunker demand. Stakeholders should monitor policy developments and vessel‑type trends to gauge the timing and scale of the transition, as Singapore’s bunkering strategy adapts to balance short‑term profitability with long‑term sustainability goals.