Minister Tan See Leng says tariffs expected to rise further due to Middle East conflict affecting gas prices
Electricity tariffs in Singapore will increase by 2.1%, or S$0.56 per kWh, from April to June 2026, with further hikes expected as global fuel prices rise.
This brings the total tariff to 27.27 cents per kWh, up from 26.71 cents previously.
Manpower Minister Tan See Leng said the ongoing Middle East conflict has driven up oil and natural gas prices, which will directly impact electricity and town gas tariffs in Singapore.
He noted that about 95% of Singapore’s electricity is generated from natural gas.
As such, global fuel price increases will flow through to local electricity prices.
Source: Tan See Leng on Facebook
‘Significantly sharper increases’ ahead
Dr Tan said the current tariff adjustment reflects only a partial impact, as fuel prices only began rising in March.
However, disruptions to oil and gas production in the Middle East could have longer-term effects.
“Because of that, we will see significantly sharper increases in tariffs in the coming quarters ahead,” he said.
He added that the conflict shows no signs of easing and may disrupt key supply routes, including those through the Red Sea, potentially leading to fuel shortages in the medium to longer term.
“Singaporeans and businesses must prepare for potential significant turbulences ahead,” Dr Tan said.
Four-room HDB household bills to rise by S$1.80
For households, the increase translates to about S$1.80 more per month for families living in four-room HDB flats, according to SP Group’s media release on 31 March.
Source: dragonimages on Canva, image for illustration purposes only
Dr Tan encouraged residents to manage costs by reducing electricity usage.
He suggested switching off appliances at the socket to avoid standby power, setting air-conditioners to 25°C instead of 23°C, and using LED bulbs.
Households were also reminded to tap on climate vouchers to purchase energy-efficient appliances.
He added that switching to a more efficient air-conditioner could help families save about $300 a year.
“By using energy wisely, you can manage your electricity costs better and can help contribute to Singapore’s energy resilience.”
Netizens question rising electricity costs and suggest possible relief measures
The announcement sparked discussion online, with some netizens asking if more could be done to ease the impact on households.
One commenter questioned whether the Government could temporarily reduce carbon taxes to help Singaporeans cope with rising electricity costs during the current energy crisis.
Tan See Leng on Facebook
Others wondered why Singapore still appears to be heavily affected by global energy shocks despite investing in energy security and “paying more than other countries for preparedness”.
Tan See Leng on Facebook
Some also raised concerns about higher electricity bills leading to increased GST collection.
Tan See Leng on Facebook
Another netizen pointed out that countries such as Australia have reduced fuel taxes to help residents cope, and asked if similar measures could be considered locally.
Tan See Leng on Facebook
Also Read: Middle East conflict may affect S’pore household electricity prices: Energy Market Authority
Middle East conflict may affect S’pore household electricity prices: Energy Market Authority
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Featured image adapted from MS News.
