Singapore households are set to see an increase in their utility bills from April to June, as electricity and gas tariffs inch upward in response to rising global fuel costs.
In a statement released on Tuesday, March 31, SP Group announced that electricity tariffs for households will increase by 2.1% compared to the previous quarter.
This brings the rate to 29.72 cents per kilowatt-hour (kWh), inclusive of GST. For residents living in four-room HDB flats, the adjustment translates to an average monthly increase of about S$1.96—modest, but noticeable amid broader cost-of-living concerns.
Gas tariffs are also set to rise during the same period. City Energy said prices will go up from 23.63 cents per kWh to 23.89 cents per kWh, reflecting similar cost pressures in the energy market.
According to the Energy Market Authority (EMA), the increases are largely tied to higher natural gas prices, which have been affected by tightening global supply.
The ongoing tensions in the Middle East have placed additional strain on fuel availability, pushing up costs worldwide. In Singapore's case, this impact is particularly significant, as around 95% of its electricity is generated using imported natural gas, the same resource used to produce town gas.
However, the regulator noted that the current tariff adjustments only partially reflect the recent surge in fuel prices. This is because electricity and gas tariffs are calculated based on the average fuel costs from the first two and a half months of the preceding quarter. Since prices began climbing sharply only towards the end of February, their full impact has yet to be felt.
The Energy Market Authority has also warned that consumers could face "further and potentially sharper increases" in the coming months, especially if global fuel prices remain elevated. Those renewing retail electricity contracts later this year may also encounter higher rates.
The agency has urged both households and businesses to brace for continued volatility in energy costs, given the uncertainty surrounding the duration of geopolitical tensions. At the same time, it emphasised the importance of energy conservation, encouraging the use of efficient appliances and mindful consumption as practical ways to manage rising expenses.
The wholesale electricity prices in Singapore have already been climbing since the onset of the Middle East conflict, signalling that the current increase may be just the beginning of a broader upward trend.
