Households in Singapore will have to pay more for electricity and gas in the July to September quarter, after the latest revision to utility tariffs. The electricity tariff is set to rise by 17 per cent, while gas tariffs will increase by 7.1 per cent. The Energy Market Authority has attributed the increase to higher fuel prices, which it links to the conflict in the Middle East.
In concrete terms, the quarterly household electricity tariff will go up by 4.64 cents to 31.91 cents per kilowatt hour. According to data from SP Group, this is the highest level since July 2022, underscoring how the recent surge in global fuel costs is now feeding through to the bills that ordinary consumers receive at home.
The impact will be felt across different housing types. For families living in a four-room Housing and Development Board flat, the change is expected to add about 17.14 Singapore dollars to their average monthly electricity bill before goods and services tax. While the figure may appear modest in isolation, it adds to the broader pressure on household budgets at a time of elevated living costs.
The reason for the increase lies largely in how the tariff is structured. Fuel cost is the bigger of the two main components, and around 95 per cent of Singapore's electricity is generated from imported natural gas, whose price is tied to oil under commercial supply contracts. There is also a built-in lag, with the average natural gas price over one quarter used to set the tariff for the next, meaning recent price movements take time to show up on bills.
Because the conflict in the Middle East has kept fuel prices elevated, those higher costs are now translating into steeper tariffs. The Energy Market Authority noted that the situation remains uncertain: if conditions improve, fuel prices and tariffs could ease later in the year, but a sustained disruption could keep liquefied natural gas prices high and push tariffs up further into the following quarters.
To help cushion the impact, more than one million HDB households will receive rebates in July to offset their utilities and conservancy charges. Depending on flat type, households can expect to receive up to about 190 Singapore dollars, which is double the regular rebates, along with up to a month of service and conservancy charge rebates. The amounts will be credited directly into their utilities accounts, with the support aimed at helping lower- and middle-income families cope.