Electricity tariff for S’pore households to rise by 17%, gas tariff by 7.1% from July to September

Starting from July to September 2026, electricity tariffs for Singaporean households are set to increase by 17 percent, while town gas tariffs will rise by 7.1 percent. These adjustments come in response to the surge in natural gas prices, primarily influenced by ongoing tensions in the Middle East. According to the Energy Market Authority (EMA), these increases reflect the heightened production costs for both electricity and town gas, which have been exacerbated by the global energy market volatility linked to geopolitical conflicts.

The EMA announced on June 30 that the rise in electricity prices is attributed to the sharp increase in natural gas prices observed since late February. This trend continued throughout April and June, significantly impacting the cost of generating electricity within Singapore. SP Group, the grid operator, detailed that the electricity price for residential users would climb by 4.64 cents per kilowatt-hour (kWh) from the previous quarter, reaching 31.91 cents per kWh before Goods and Services Tax (GST). For a typical four-room HDB household, this translates to an approximate increase of $17.14 in the average monthly electricity bill, prior to GST.

Similarly, City Energy, the primary provider of piped town gas, indicated that the gas tariff for households would increase by 1.56 cents per kWh, bringing the total to 23.48 cents per kWh before GST. This marks a 7.1 percent increase from the previous quarter. Both SP Group and City Energy adjust their tariffs quarterly according to the guidelines established by the EMA, taking into account fluctuations in global fuel prices driven by geopolitical dynamics.

Experts suggest that the current electricity tariff hike surpasses initial expectations, yet it aligns with the calculation methods used for determining energy costs. David Broadstock, an energy consultant, noted that the timing of the conflict's onset played a role in the calculations for the previous tariff revisions, contributing to the larger increase seen now. He emphasized that the ongoing uncertainties surrounding the Middle East situation justify the anticipated price hikes.

Consumers affected by these increases might consider securing fixed-price electricity plans, which have become increasingly popular among households. Since the beginning of the year, the percentage of households opting for such plans has risen marginally, indicating a strategic move towards stabilizing their energy expenses amidst unpredictable market conditions. Meanwhile, those who purchase electricity under the regulated tariff from SP Group have seen a slight decline in numbers, suggesting a shift in consumer behavior toward alternative pricing models.

As the situation in the Middle East remains uncertain, there is potential for future decreases in fuel prices should the geopolitical landscape stabilize. In such scenarios, electricity and town gas tariffs could potentially decrease in the fourth quarter of 2026. The EMA continues to monitor fuel supply situations closely and collaborates with industry stakeholders to maintain supply security.

For households seeking alternatives to the regulated tariffs, several options exist. They can opt to buy electricity from SP Group at the regulated rate or explore offerings from various electricity retailers that provide fixed, discounted, or time-of-use pricing plans. Retailers such as Geneco, Tuas Power, Keppel Electric, and Flo offer diverse packages tailored to meet varying consumer needs and preferences. Additionally, adopting energy-saving practices, such as adjusting air conditioner temperatures, turning off unused devices, and selecting energy-efficient appliances, can help mitigate the financial impact of rising utility costs. These measures not only assist in reducing household expenditures but also support broader efforts aimed at enhancing energy efficiency across Singapore.