Electricity tariffs to rise 17% from July to September, reflecting higher fuel costs from Middle East conflict

Households will also pay 7.1 per cent more for town gas in the third quarter.

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SINGAPORE: Singapore households will pay higher electricity and gas tariffs in the third quarter of 2026 after earlier increases in natural gas prices, driven by the Middle East conflict, pushed up the cost of producing electricity and gas locally, said the Energy Market Authority (EMA) on Tuesday (Jun 30).

The household electricity tariff from July to September will be 4.64 cents per kWh more than the previous quarter before Goods and Services Tax (GST), SP Group said.

Electricity prices will now be 31.91 cents per kWh for the quarter. 

The average monthly electricity bill for families living in four-room Housing and Development Board (HDB) flats will increase by S$17.14 (US$13.24).

The overall electricity tariff (before GST), including tariffs for non-households, will increase by an average of 17 per cent compared with the previous quarter.

The gas tariff for households will also be higher from July to September compared to the preceding quarter, with an increase of 1.56 cents per kWh before GST, City Energy said on Tuesday.

The revised third-quarter gas tariff will go up from 21.92 cents per kWh to 23.48 cents per kWh - about a 7.1 per cent increase.

EMA said on Friday that Singapore's regulated electricity and town gas tariffs are determined on a quarterly basis, based on the gas prices in the first 2.5 months of the previous quarter. 

"This means that changes in fuel prices in a quarter will only show up in the electricity tariffs in the next quarter. This was the case when the regulated electricity tariffs for April to June 2026 rose slightly, as it only included the rise in fuel prices from Feb 28 (when the Middle East conflict started) till Mar 15, 2026," it added.

SP Group had previously said that electricity tariffs in subsequent quarters were expected to increase further as the full impact of elevated natural gas prices was incorporated into tariff calculations.

In a ministerial statement in parliament on Apr 7, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong noted that the July tariff adjustment was expected to fully reflect higher fuel costs.

The situation in the Middle East "remains uncertain", but if it improves, lower fuel prices could in turn lead to lower electricity and town gas tariffs in the fourth quarter of 2026, EMA said.

The authority added that it is monitoring the fuel supply situation closely and working with the industry to ensure supply security. 

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OPTIONS FOR HOUSEHOLDS

Households can choose to buy electricity from SP Group at the regulated electricity tariff, which is reviewed quarterly, or from electricity retailers at fixed-price, discount-off-the-regulated-tariff and time-of-use price plans. 

While consumers on electricity retail contracts may see higher prices at the point of contract renewal, they are advised to choose the electricity supply option that best suits their needs and preferences. 

Households can also do more to conserve energy by setting air conditioners to a moderate temperature (for example, 25°C or higher), switching off lights and appliances when they are not in use, and choosing energy-efficient appliances.

"This will not only help to reduce household electricity bills but also contribute to Singapore's energy resilience," said EMA.

Singapore relies heavily on imported energy, with about 95 per cent of its electricity generated from imported natural gas, according to the authority.

Under support measures in response to the US-Iran war announced by Prime Minister Lawrence Wong in Budget 2026, another tranche of U-Save and Service & Conservancy Charges (S&CC) rebates will be disbursed in July.

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