Middle East conflict drives up power generation costs; electricity tariffs for Singapore households to rise by 17% this quarter

Household electricity tariffs in Singapore will rise by 17% and gas tariffs by 7.1% from 1 July to 30 September, both reaching record highs due to higher global natural gas prices driven by the Middle East conflict. Commenting on the price increase, Asst Prof Yeow Hwee Chua from NTU's SSS said that when geopolitical risks escalate, energy markets price will reflect the risk of supply disruptions in advance and consequently, fuel prices may rise even if actual supplies remain unaffected. He cautioned against assuming that the Middle East conflict have a greater impact than the Russia-Ukraine war simply because electricity prices have surged higher this time as electricity prices reflect the uncertainties the energy market is currently facing.

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