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

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.