PUBLISHED ONMarch 12, 2026 3:46 AMBYKhoo Yi-HangOil and gas prices have risen as the conflict in the Middle East continues — now it seems electricity prices are set to climb as well.
Manpower Minister Tan See Leng shared in a Facebook post on Thursday (March 12) that Singaporeans should "expect electricity prices to increase in the coming months".
Dr Tan explained that the Middle East is a major fuel-producing region that utilises the Strait of Hormuz to transport oil and natural gas, and the closure of the Strait due to the conflict will affect global imports of these resources.
"With the global environment becoming less certain and stable, fuel disruptions and price fluctuations are more frequent," he said.
He added that for Singapore, which imports all the natural gas needed to fuel 95 per cent of its electricity generation, the impact of such effects is felt.
To protect Singapore's energy security, the Government has "multiple lines of defence" Dr Tan noted, highlighting four points in his post.
He shared that half of the gas piped to Singapore is from the region and remains unaffected, and Singapore also has diversified sources of imported liquefied national gas (LNG).
These LNG importers can tap on their "global portfolio of sources" to replace cargoes originally from the Middle East, he said.
He added that efforts are already underway with importers to find replacement cargoes "for the one LNG cargo from the Middle East".
Singapore also has a fuel stockpile comprising a mixture of gas and diesel which power generation companies can draw from in the event of a disruption to gas supplies, Dr Tan assured.
Lastly, he stated that the Energy Market Authority (EMA) also requires electricity-generating turbines to be able to run on both gas and diesel, with regular tests for power plants to ensure this standard is upheld.
"While these measures are in place to ensure Singapore has enough energy for our needs, global gas prices are indeed rising due to the conflict," Dr Tan stated.
"We must therefore expect electricity prices to increase in the coming months."
He stressed that households and businesses can do their part in conserving electricity and utilising energy-efficient appliances.
Support will also be readily available from the Government where necessary, including the up to $570 in U-Save rebates announced during Budget 2026, Dr Tan said.
He also cautioned: "As the situation in the Middle East is evolving, we are watching closely especially for secondary effects of disruption. This conflict is a reminder that we live in an unpredictable world, and we cannot take our energy security for granted.
"We must therefore do what we can to economise on our use of energy, and everybody has a part in this."
[[nid:731293]]
khooyihang@asiaone.com