HOUSEHOLDS using City Gas can expect to pay less for town gas in the coming months, because of lower fuel prices.
From Feb 1, household gas tariffs will fall by about 1.81 cents per kilowatt hour (kWh).
For a regular three-room flat, this could mean a saving of about $1.21 a month on the gas bill.
The price revision translates to an estimated 8.9 per cent reduction in the bill, based on average gas consumption data by Singapore Power.
City Gas said the fall in tariff is due to a drop in fuel costs, compared to the previous quarter.
This comes on the heels of an earlier decrease announced in October last year, when City Gas lowered gas tariffs by 0.23 cent per kWh, again citing falling fuel costs.
Global oil prices have collapsed by about 60 per cent since June last year, dragged down by a persistent global supply glut.
Analysts expect oil prices to decline even further.
The reduced gas tariffs match a drop in electricity prices, as Singapore Power announced an 8 per cent decrease in household electricity tariffs at the end of last year.
Electricity tariffs fell from 25.28 cents to 23.29 cents per kWh for the period of Jan 1 to March 31.
City Gas reviews its gas tariffs every three months based on guidelines set by gas industry regulator Energy Market Authority.
City Gas supplies town gas to 700,000 homes in Singapore, or almost 90 per cent of the residents living in new HDB flats and private properties.
The company also pipes town gas to commercial and industrial customers.
This article was first published on Jan 30, 2015.
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