Electricity & town gas prices in S'pore expected to increase amid Middle East conflict: EMA

Fuel prices are likely to stay elevated in the near term due to widespread disruptions to oil and natural gas production caused by the ongoing Middle East conflict, Singapore's Energy Market Authority (EMA) said on Mar. 31.

The ongoing Middle East conflict has caused a strain on global fuel supply chains, resulting in significant increases to the prices of oil and natural gas.

Being a small city-state, Singapore is highly dependent on energy imports, the agency noted.

Around 95 per cent of the country's electricity is generated from imported natural gas, which also serves as the primary feedstock for town gas production.

A sustained rise in natural gas costs would therefore translate directly into higher electricity and town gas bills for households and businesses.

Q2 tariffs only partially affected

EMA noted that the regulated tariffs for electricity and town gas in the second quarter of 2026 have so far only been partially affected by the fuel price increase.

This is because quarterly tariffs are calculated based on average fuel costs over the first 2.5 months of the preceding quarter.

The Q2 tariffs were therefore derived from fuel prices between January and mid-March, and natural gas prices had only begun to climb after Feb. 28.

As a result, the full impact of the price surge is not yet reflected in current tariff rates.

EMA warned that subsequent quarters could see "further, and potentially sharper increases" in both electricity and town gas tariffs.

Consumers on electricity retail contracts should similarly brace for higher prices upon renewal.

EMA monitoring situation

EMA affirmed it is monitoring the situation and working closely with the industry to safeguard supply security.

"We cannot predict how long the conflict in the Middle East will last," the agency said, adding that households and businesses should be prepared for energy costs that are both higher and more volatile in the period ahead.

The agency encouraged consumers to reduce their energy footprint by switching to more energy-efficient appliances and adopting 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."

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