Singaporeans should brace for a period of "higher and more volatile energy costs" as the ongoing conflict in the Middle East continues to severely strain global fuel supply chains.
In a statement on Tuesday (March 31), the Energy Market Authority (EMA) warned that while regulated tariffs for electricity and town gas in the second quarter of 2026 have only been partially impacted, subsequent quarters are likely to see sharper increases in price.
As a small city-state, Singapore heavily relies on energy imports, with approximately 95 per cent of electricity produced from imported natural gas.
This same fuel serves as the primary feedstock for town gas production, meaning any global price surge directly translates to higher utility bills for every consumer across the island.
The current regulatory framework determines tariffs based on average fuel costs in the first 2.5 months of the preceding quarter. This means calculations for the April to June period were based on prices from January to mid-March.
As natural gas prices only began to climb after Feb 28, the full weight of the crisis has not yet been felt by households.
"Given the extensive disruptions to oil and natural gas production in the Middle East, fuel prices are expected to remain elevated in the foreseeable future," said the EMA.
This suggests that impacts of the conflict will likely hit in the third quarter of 2026 and beyond, with potentially sharper hikes on the horizon.
Consumers currently electricity retail contracts are also expected to see significant price jumps when they seek to renew their plans, said the authority.
The EMA added that it is currently working with industry partners to ensure the security of Singapore’s energy supply, though admitting it cannot predict the duration of the overseas conflict.
In response to the looming price surges, the EMA urges both households and businesses to pivot toward energy-efficient appliances and strict conservation habits.
"Everyone can play a part by using more energy-efficient appliances and conserving energy to reduce energy consumption. This will help lower energy costs and contribute to Singapore's energy resilience," said the EMA.
This article was produced with the assistance of AI and checked by our editors.
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