Singapore likely to see sharper hikes in electricity, town gas tariffs amid Middle East war: EMA
Household and business consumers should use more energy-efficient appliances and conserve energy, says the authority
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[SINGAPORE] The Energy Market Authority (EMA) said on Tuesday (Mar 31) that Singapore should prepare for further and potentially sharper increases in electricity and town gas tariffs, as the ongoing conflict in the Middle East strains global fuel supply chains.
“Given the extensive disruptions to oil and natural gas production in the Middle East, fuel prices are expected to remain elevated in the foreseeable future,” the statement said.
“Consequently, we are likely to see further and potentially sharper increases in the electricity and town gas tariffs in subsequent quarters. Similarly, consumers on electricity retail contracts are likely to also see an increase in prices when renewing their contracts,” EMA added.
The government agency also noted that as a small city-state, Singapore is “highly dependent” on energy imports, with about 95 per cent of the Republic’s electricity produced from imported natural gas – also the main feedstock for the production of town gas.
The Gulf conflict has led to significant increases in the prices of oil and natural gas.
“An increase in the cost of natural gas would therefore lead to increase in prices of electricity and town gas for all consumers in Singapore,” said EMA.
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SP Group announced on Tuesday that household electricity tariffs will rise 2.1 per cent for the second quarter of 2026.
EMA said that because prices of natural gas had started to climb only after Feb 28, the regulated tariffs for electricity and town gas in the second quarter of 2026 have been only partially affected.
The S$0.0056 per kilowatt-hour (kWh) tariff increase from S$0.2671 to S$0.2727, excluding goods and services tax, will translate into a S$1.80 higher average monthly electricity bill for families living in four-room HDB flats.
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From Apr 1 to Jun 30, the overall electricity tariff before GST (including tariffs for non-households) will increase by an average of 2 per cent or S$0.0052 per kWh, compared with the previous quarter.
“EMA is closely monitoring the situation and working closely with the industry to ensure supply security. We cannot predict how long the conflict in the Middle East will last,” it said. “Household and business consumers must therefore be prepared for higher and more volatile energy costs.”
It urged all to play their part by using more energy-efficient appliances and conserving energy to reduce energy consumption. “This will help lower energy costs and contribute to Singapore’s energy resilience,” it added.
Prime Minister Lawrence Wong said on Friday when speaking to Singapore media from Hong Kong that the government will be providing updates at the next parliamentary sitting on Apr 7, on how it is preparing for “all possible contingencies” relating to the Iran war.
It will also address the impact on the economy, and include ways to strengthen Singapore’s energy and supply chain resilience, he noted.
Minister-in-charge of Energy and Science and Technology Tan See Leng previously wrote in a Facebook post on Mar 12 that Singapore households need to expect electricity prices to go up in the coming months.
Dr Tan said that around half of the city-state’s gas is piped to Singapore from the region and is therefore “unaffected”. Moreover, the Republic diversifies its sources of imported liquefied natural gas, and hence is “not overly exposed to the Middle East”, he noted.
He said that Singapore has established a fuel stockpile – a mixture of gas and diesel – which power-generation companies may draw from in the event of a severe disruption to gas supplies.
On Tuesday morning, Dr Tan also posted on Facebook that he was flying to Canberra for a series of bilateral follow-up meetings with Australian ministerial counterparts.
“Hope to strengthen our essential energy supplies nexus, especially important in these tumultuous times,” the post read.
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