The ongoing Middle East conflict has strained global fuel supply chains, causing oil and natural gas prices to increase significantly. As a small city-state, Singapore is highly dependent on energy imports. About 95% of our electricity is produced from imported natural gas, which is also the main feedstock for the production of town gas. An increase in the cost of natural gas would therefore lead to increase in prices of electricity and town gas for all consumers in Singapore.

2. The regulated electricity and town gas tariffs for each quarter are determined based on the average fuel costs in the first 2.5 months of the preceding quarter. The electricity and town gas tariffs for the April to June period are therefore based on fuel prices from January to mid-March.

3. Because prices of natural gas had started to climb only after 28 February 2026, the regulated tariffs for electricity and town gas in the second quarter of 2026 have only been partially affected by the rise in fuel prices.

4. 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. Consequently, we are likely to see further and potentially sharper increases in the electricity and town gas tariffs in subsequent quarters. Similarly, consumers on electricity retail contracts are likely to also see an increase in prices when renewing their contracts.

5. EMA is closely monitoring the situation and working closely with the industry to ensure supply security. We cannot predict how long the conflict in the Middle East will last. Household and business consumers must therefore be prepared for higher and more volatile energy costs. 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.