Singapore's City Gas announced on Tuesday that the gas tariff for households will increase by 4.19 percent for the next three months. The company said in a press release that the tariff will be raised from 17.68 cents per kWh to 18.42 cents per kWh from Feb 1 to Apr 30.
City Gas, which supplies town gas to nearly 90 percent of residents in new housing board estates and private properties, said that this latest rise in tariff is due to a 15.6 percent increase in fuel costs compared to the previous quarter.
The Energy Market Authority (EMA), the gas industry regulator has set some guidelines under the Gas Act (Chapter 116A) for regulating the gas industry and the gas tariffs are reviewed based on that.
Meanwhile, recently Keppel Infrastructure reported a 25.4 percent rise in fourth-quarter profit, helped by higher contributions from City Gas. The company said that the revenue was up 4 percent at S$158.1 million, boosted by higher revenues from City Gas and Basslink.
At City Gas, revenue of S$81.2 million in the quarter was higher than the corresponding period in the previous financial year, due to higher town gas tariff.
"City Gas performance could fluctuate depending on changes in economic conditions and time lag in the adjustments of gas tariffs in response to changes in fuel costs," Keppel Infra said in a statement.