Last updated: February 9, 2026 | Data and prices subject to change. See full disclaimer below.
Choosing between diesel and petrol commercial vans in Singapore has never been more critical. With the Commercial Vehicle Emissions Scheme (CVES) imposing a $10,000 surcharge on diesel vans while offering a $10,000 rebate for petrol variants, the financial landscape has shifted dramatically.
This comprehensive guide breaks down the true costs—from upfront prices to five-year ownership expenses—helping you make the smartest investment for your business.
Understanding Singapore's CVES Commercial Vehicle Emissions Scheme
The government's push for cleaner air has created a $20,000 price gap before you even start the engine.
Petrol Vans: Get a $10,000 Rebate (Direct reduction on ARF)
Diesel Vans: Pay a $10,000 Surcharge
When you register a commercial van, CVES automatically applies at the Land Transport Authority (LTA). This policy reflects Singapore's commitment to reducing particulate matter emissions and nitrogen oxides from diesel engines. Learn more about the complete commercial vehicle buying process in Singapore.
Important: CVES rates are reviewed periodically by the Land Transport Authority. Always verify current rates before finalizing purchases.
Upfront Purchase Price Comparison: Diesel vs Petrol Vans
Based on ABLINK market data (February 2026).
Toyota Hiace Standard Roof Pricing
| Fuel Type | Base Price* | COE (Cat C)** | CVES | Total Cost |
|---|---|---|---|---|
| Petrol | Starting from $96,800 | ~$74,801 | -$10,000 | ~$161,601 |
| Diesel | Starting from $116,300 | ~$74,801 | +$10,000 | ~$201,101 |
The Gap: ~$39,500 upfront savings with Petrol before considering any operating costs.
*Prices subject to change without prior notice. COE based on Feb 4, 2026 bidding results (~$74,801).
**COE fluctuates bi-weekly. Contact sales for latest "On The Road" pricing.
This $39,500 gap represents substantial working capital for SMEs. For a business purchasing three vans simultaneously, the savings approach $120,000—enough to fund an additional vehicle or invest in other business operations.
For detailed specifications, see our complete Toyota Hiace buyer's guide. View Toyota Hiace inventory and current pricing.
Fuel Consumption and Running Costs Analysis
Diesel is indeed more efficient, but is it enough to offset the upfront cost?
Real-World Fuel Economy Comparison
Diesel vans: ~8.9 liters per 100 kilometers
Petrol vans: ~10.4 liters per 100 kilometers
The Gap: Diesel saves approximately $6 per 100 km.
Singapore Fuel Prices February 2026
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Diesel: $2.53 per liter
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Petrol (95 octane): $2.74 per liter
Annual Fuel Cost Projections by Mileage
| Annual Mileage | Diesel Cost/Year | Petrol Cost/Year | Diesel Saves |
|---|---|---|---|
| 30,000 km (Low) | $6,756 | $8,550 | $1,794 |
| 45,000 km (Medium) | $10,134 | $12,825 | $2,691 |
| 60,000 km (High) | $13,512 | $17,100 | $3,588 |
Break-Even Mileage Calculation
To recover the extra $39,500 you paid upfront for diesel, you would need to drive roughly 650,000+ km!
For most Singapore-based businesses operating within the city, this math simply doesn't work in favor of diesel. Compare detailed fuel consumption in our Nissan NV350 petrol vs diesel guide.
Fuel price caveat: Prices fluctuate monthly. Historical data shows diesel ranging $2.35-$2.68/L and petrol $2.58-$2.89/L over past 12 months.
Maintenance Costs: Diesel vs Petrol Van Servicing
It's not just about fuel. Modern Euro VI Diesel engines in Singapore face a specific challenge: DPF Clogging.
Diesel Van Maintenance Requirements and Costs
The Issue: Stop-and-go city traffic prevents the Diesel Particulate Filter (DPF) from cleaning itself naturally.
The Cost: Manual regeneration or replacement can cost $1,500 - $3,000.
Additional diesel requirements:
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Oil changes every 5,000-10,000 km
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AdBlue fluid top-ups ($50-$80 per refill)
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Timing belt replacement every 100,000 km ($800-$1,200)
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Specialized workshop diagnostics required
Annual diesel maintenance: $1,600 - $2,000
Petrol Van Maintenance Advantages
Simpler systems mean:
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Oil changes every 10,000 km
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No DPF issues or forced regeneration costs
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Timing chain (lasts lifetime, not belt)
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Service at most neighborhood workshops
Annual petrol maintenance: $1,200 - $1,500 (~30% less than diesel)
5-Year Maintenance Savings with Petrol: $2,000 - $4,000
Complete Total Cost of Ownership Analysis
Here's the complete financial picture over five years:
Medium Mileage Business Scenario (45,000 km/year)
| Cost Category | Diesel Van | Petrol Van | Difference |
|---|---|---|---|
| Purchase (with CVES) | $201,101 | $161,601 | -$39,500 |
| Fuel (5 years) | $50,670 | $64,125 | +$13,455 |
| Maintenance (5 years) | $8,000 | $6,000 | -$2,000 |
| Road Tax (5 years) | $11,250 | $11,250 | $0 |
| Insurance (5 years) | $16,250 | $15,500 | -$750 |
| TOTAL (5 years) | $287,271 | $258,476 | -$28,795 |
Petrol saves $28,795 over 5 years even after accounting for higher fuel consumption.
Projection note: Assumes stable fuel prices (±10%), no major regulatory changes, and standard maintenance schedules. Actual costs may vary.
Which Commercial Van Should You Choose: Decision Matrix
| Factor | Choose Petrol If... | Choose Diesel If... |
|---|---|---|
| Daily Range | < 200km (Urban/City deliveries) | > 300km (Cross-Border/Malaysia) |
| Load Type | Parcels, Tools, Food, Equipment | Heavy Machinery, Towing >1,000kg |
| Routes | Frequent stops, residential areas | Highway driving, long-haul |
| Maintenance | Want simpler service, wider workshop options | Have diesel-specialized mechanics |
| Ownership Plan | 5-7 years (typical COE cycle) | 8+ years (long-term asset) |
| Priority | Lower upfront cost, better cashflow | Maximum torque, fuel efficiency at high mileage |
| Operating Area | Singapore only | Singapore + Malaysia cross-border |
Best Business Types for Petrol Vans
Petrol is optimal for:
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Last-mile delivery & e-commerce fulfillment
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Food & beverage distribution
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Event logistics & equipment rental
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Renovation & construction (tools/light materials)
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Small-scale moving services
When Diesel Makes Business Sense
Diesel remains competitive for:
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Cross-border logistics (daily Malaysia routes)
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Heavy construction materials transport
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Industrial equipment hauling
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Long-distance courier (>300km daily)
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Towing services requiring maximum torque
Explore our best e-commerce delivery vans guide for detailed model comparisons.
Popular Petrol Van Models for Singapore Businesses
Toyota Hiace Petrol: Singapore's Most Trusted Commercial Van
Singapore's most trusted commercial van platform. Available in Standard and High Roof configurations.
Key Specifications:
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Engine: 2.0L Petrol
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Payload: Up to 1,000kg
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Fuel Economy: ~10.4L/100km
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Seating Options: 3-seater, 13-seater, 14-seater
Best For: General cargo, tools, equipment rental, passenger transport
View Toyota Hiace models and pricing | Read complete buyer's guide
Nissan NV200 Petrol: Compact Urban Delivery Van
Compact and maneuverable for tight urban environments.
Key Specifications:
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Engine: 1.6L Petrol
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Payload: Up to 650kg
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Fuel Economy: ~10L/100km
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Dimensions: Smaller footprint ideal for city navigation
Best For: Parcel delivery, food delivery, small-scale logistics
View Nissan NV200 inventory | Compare NV200 vs alternatives
Passenger Vans for Group Transport
For businesses requiring people transport (hotels, tour operators, corporate shuttles).
Available Configurations:
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13-seater vans
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14-seater vans
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18-seater vans
Commercial Van Financing Options: Buy vs Lease
Whether you choose Petrol or Diesel, how you acquire the vehicle matters.
Outright Purchase Benefits
✅ Maximum asset control and modification flexibility
✅ Capital allowance tax benefits
✅ Ideal if you have strong cash reserves ($180k+ liquid)
✅ Full ownership for balance sheet strength
Commercial Vehicle Leasing Advantages
✅ Preserve Cashflow: Monthly payments starting from ~$1,800 (petrol vans)
✅ Zero Maintenance Risk: Leasing packages often include servicing
✅ Flexibility: Upgrade your fleet as business grows
✅ No COE Volatility: Fixed monthly cost regardless of COE fluctuations
✅ Faster Scaling: Deploy capital for inventory/marketing instead
ABLINK Leasing Options:
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Short-term rental: Daily to monthly ($120-$180/day)
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Long-term lease: 1-3 year agreements with maintenance
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Lease-to-own: Gradual ownership transition
Learn more about commercial vehicle leasing programs, monthly van rental options, and leasing strategies to save costs.
Electric Commercial Vans: Alternative to Consider
While this analysis focuses on diesel vs petrol, electric commercial vans represent a compelling third option:
Current EV Incentives in Singapore (2026):
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CVES: Up to $15,000 for light commercial EVs
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EEAI: 45% ARF rebate capped at $7,500 (expires Dec 2026)
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Combined savings: Up to $40,000
Electric vans work best for:
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Fixed routes under 150 km daily
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Depot charging infrastructure available
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Lowest operating costs priority (fuel + maintenance)
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Sustainability credentials for corporate clients
Current EV Limitations:
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Limited model availability (3-4 options)
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Higher purchase prices ($180k-$220k after incentives)
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Payload reduction (200-350 kg) due to battery weight
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Range anxiety for flexible routing
See our comprehensive diesel vs electric van cost analysis, electric lorry incentives guide, and BYD eT3 vs NV200 comparison.
Additional Commercial Vehicle Buying Guides
Comprehensive Van Guides:
Browse by Vehicle Type:
Pre-Purchase Checklist for Commercial Van Buyers
Before finalizing your commercial van purchase:
Essential Due Diligence Steps
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Obtained written quotes from 3+ dealers with current COE prices
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Verified current CVES rates (check LTA OneMotoring website)
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Conducted loaded test drives matching typical operations
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Confirmed warranty coverage (especially emission systems)
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Identified authorized service centers near your depot
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Calculated actual annual mileage from 3-6 months data
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Consulted accountant about tax implications
Diesel Van Specific Checks
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Confirmed DPF replacement covered under warranty
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Identified diesel-specialized workshops nearby
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Planned weekly highway drives (30+ min) for DPF regeneration
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Budgeted for AdBlue fluid top-ups
Leasing Agreement Review Points
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Reviewed mileage limits and excess charges
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Understood early termination penalties
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Requested guaranteed buyback values (if lease-to-own)
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Clarified maintenance coverage inclusions
Contact ABLINK for Commercial Van Consultation
Don't guess with outdated data. Get a precise quote based on today's COE prices and your specific business requirements.
Get in Touch with Our Fleet Specialists:
📞 WhatsApp: +65 8946 8228
(Instant response Mon-Fri 9AM-6PM)
📧 Email: sales@ablink.sg
(Detailed quotes within 24 hours)
🌐 Browse Our Commercial Vehicle Inventory:
We help you optimize fleet composition, financing structures, and maintenance strategies for maximum operational efficiency.
Key Takeaways: Diesel vs Petrol Van Decision
✅ Upfront Cost: Petrol vans cost ~$39,500 less after CVES incentives (Feb 2026)
✅ 5-Year Savings: Petrol maintains $25,000-$33,000 cost advantage for typical Singapore operations
✅ Maintenance: Petrol costs 30% less to maintain with lower downtime risk
✅ Break-Even: Diesel only economically justified above ~85,000 km annually (cross-border ops)
✅ Resale Value: Petrol projected to retain 5-8% higher values (market dependent)
✅ Best for Most: 70-75% of Singapore businesses benefit more from petrol
Legal & Editorial Disclaimer
Price Volatility & Accuracy
All prices mentioned (vehicle OMV, COE premiums, fuel prices, maintenance costs) are based on market rates as of February 9, 2026, 10:00 AM SGT.
COE Premiums: Determined by open bidding and fluctuate bi-weekly. The $74,801 figure cited reflects February 4, 2026 bidding results and may differ significantly by your purchase date. COE results are published by the Land Transport Authority after each bidding exercise.
Vehicle Pricing: Manufacturer Suggested Retail Prices (SRP) are subject to change without prior notice. Dealer pricing, promotional discounts, and parallel import options may create 5-10% price variations.
Fuel Prices: Adjusted monthly based on Singapore's Mean of Platts (MOPS) benchmark plus applicable taxes and levies. Historical volatility should be expected.
Action Required: Please confirm the latest "On The Road" price including current COE premium with our sales team at sales@ablink.sg or WhatsApp +65 8946 8228 before making purchase decisions.
Cost Projections & Calculations
Total cost of ownership calculations are estimates based on:
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Typical industry usage patterns (30,000-60,000 km annually)
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Standard maintenance schedules per manufacturer recommendations
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Average fuel consumption under mixed driving conditions
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Current regulatory frameworks (CVES, road tax, insurance)
Actual costs may vary depending on:
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Individual driving behavior and route profiles
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Actual load weights and towing requirements
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Maintenance practices and workshop selection
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Future fuel price fluctuations
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Vehicle condition and driver training
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Unexpected component failures or accidents
Variation Range: Actual 5-year total costs may differ by ±15-20% from projections presented.
Regulatory & Policy Changes
Singapore government policies including CVES incentives and surcharges, COE quota allocations, road tax rates, emission standards, diesel registration restrictions, and electric vehicle incentives are subject to revision by the Land Transport Authority (LTA), National Environment Agency (NEA), Ministry of Transport (MOT), and other government bodies without prior notice.
Recommendations for Verification:
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Check current CVES rates at OneMotoring.com.sg (LTA official portal)
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Review latest COE bidding results at LTA website
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Monitor Ministry of Transport announcements for policy changes
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Consult authorized dealers for latest regulatory compliance requirements
The analysis assumes regulatory stability over the projected ownership period. Significant policy shifts could materially impact financial conclusions.
Resale Value Projections
Residual value estimates (5-8% higher retention for petrol vs diesel after 5 years) are projections, not guarantees. Actual disposition values depend on vehicle condition, market demand, regulatory changes, COE remaining life, and economic conditions.
ABLINK does not guarantee future resale values unless explicitly stated in written lease-to-own agreements with guaranteed buyback clauses.
Editorial Independence & Commercial Disclosure
This guide is provided for educational and informational purposes to help Singapore business owners make informed commercial vehicle decisions.
Commercial Interest Disclosure:
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ABLINK Pte Ltd is a licensed commercial vehicle dealer and leasing company in Singapore
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This article references ABLINK products, services, and pricing
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ABLINK has a commercial interest in selling and leasing the vehicles discussed
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Readers should be aware of our commercial position
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We encourage buyers to obtain competing quotations from multiple dealers
Independent Verification Recommended:
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Compare quotes from 3+ dealers or leasing companies
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Verify regulatory information directly with LTA and NEA
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Consult independent mechanics for vehicle assessments
-
Review contracts with legal and financial advisors before signing
No Warranty of Outcomes
ABLINK makes no warranties, express or implied, regarding completeness, accuracy, fitness for particular purposes, or achievement of projected outcomes.
Limitation of Liability: ABLINK Pte Ltd shall not be liable for any damages arising from reliance on this guide or decisions made based on its contents.
Professional Advice Recommended
Before committing capital, consult qualified accountants, financial advisors, legal counsel, fleet management consultants, and insurance brokers.
Data Sources & Methodology
Analysis incorporates verified data from LTA Singapore, NEA, GlobalPetrolPrices.com, Motorist.sg, manufacturer specifications, dealer quotations, industry reports, and ABLINK operational data.
Update Policy
Last Update: February 9, 2026, 10:00 AM SGT
Review Cycle: Quarterly reviews, immediate updates for major policy changes, monthly fuel price adjustments if exceeding ±10% thresholds.
Contact for Corrections
Report errors or outdated information to sales@ablink.sg with subject line "Article Feedback: Diesel vs Petrol Guide".
Geographic Scope
This analysis is specific to Singapore market conditions, regulations, LTA-compliant vehicles, and SGD pricing. Information may not apply to other jurisdictions.
Copyright & Usage
Copyright © 2026 ABLINK Pte Ltd. All rights reserved.
Permitted for personal reference and educational purposes with attribution. Reproduction or commercial use requires written permission. Contact sales@ablink.sg for licensing.
ABLINK Pte Ltd
Singapore Commercial Vehicle Specialist
📍 Operating across Singapore
📞 WhatsApp: +65 8946 8228
📧 Email: sales@ablink.sg
🌐 Website: ablink.sg
End of Document
This guide represents ABLINK's analysis as of February 9, 2026. Market conditions evo
ABLINK PTE LTD
ABLINK PTE LTD is a commercial vehicle dealer established in 2023, specializing in providing high-quality, reliable, and affordable commercial vehicles for businesses in Singapore. We are committed to excellence and customer satisfaction.
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