Singapore Households Face Big Increase in Electricity Prices

Singapore's electricity prices will go up by as much as 30% starting in July, says the Energy Market Authority.

The current price is 29.72 Singapore cents per kilowatt-hour.

The conflict in the Middle East has caused global fuel supply problems, making natural gas prices rise sharply since February.

This means the electricity price will increase significantly in the next few months.

Amanda Kang from S&P Global Energy thinks the price will go up by 20% to 25%.

This could add about SGD30 to the monthly electricity bill of a four-room flat, which is now around SGD88.

A ship is seen carrying liquefied natural gas near Singapore on July 3, 2024.

Energy costs are the biggest part of the electricity price, based on average fuel prices from the previous quarter.

The new price will mostly reflect fuel costs from April to mid-June.

Energy prices have risen since the US and Israel attacked Iran, causing problems in the Gulf and closing the Strait of Hormuz.

The US and Iran signed an agreement to end the war, and traffic in the strait is expected to return to normal in 30 days.

Singapore relies heavily on imported energy, with 95% of its electricity coming from imported natural gas.

In 2025, 43% of Singapore's gas imports came from Malaysia and Indonesia, and 57% was liquefied natural gas from other countries.

David Chew from Rystad Energy says Singapore is less vulnerable to big energy price increases because it has long-term contracts for its natural gas.

Sharad Somani from KPMG expects the electricity price to rise by 20% to 30%.

He says global fuel prices have increased by more than 50% since February due to supply problems and uncertainty.

COPYRIGHT DISCLAIMERS

4English does not own the rights to this content. All rights belong to the owner. 4English only uses this content to help users learn English via the app's features. Contact to request the removal of your content: contact@4englishapp.com.

Latihan mendengarkan

Latihan mendengarkan