SINGAPORE (Feb 21): A tax proposed by Singapore on emissions of greenhouse gases will likely cover the city-state's oil refineries, a government official said on Tuesday, driving up costs in one of the region's key energy hubs. Singapore said in budget proposals announced on Monday that a carbon tax on direct emitters was set to be introduced from 2019. The government is looking at a carbon tax rate of S$10-20 (US$14.08) per tonne of greenhouse gas emissions, it said on Monday. Refineries in Singapore currently pay no taxes on carbon emissions, so such a tax would weigh heavily on the industry's profit margins, which are already under pressure from rising competition in China, India and the Middle East. A carbon tax, taken out of every tonne of CO 2 equivalent pumped out in emissions by industries, would be a particular blow to older and less-efficient refineries.

Source: The Edge Markets February 21, 2017 02:37 UTC