Singapore’s state-owned grid operator announced it is raising electricity tariffs to cover the higher cost of imported natural gas, adding to growing inflationary pressures.
Electricity prices for its consumers will increase on average by 10% in the three months beginning April, SP Group said in an emailed statement Thursday. For households, the electricity tariff, excluding taxes, will increase to 27.94 cents per kWh from 25.44 cents from April 1, the company said.
Significantly higher crude oil and gas prices in the first quarter of this year prompted the tariff increase, it said.
Higher energy prices following Russia’s invasion of Ukraine have added to the global supply squeeze, fanning inflation the world over. Singapore’s core inflation -- -- which excludes private transport and accommodation costs -- is expected to pick up from the 2.2% level seen last month, boosting the case for further tightening when the nation’s central bank reviews policy settings in April.
The hike in tariffs -- the highest in data going back to Jan. 2014 -- prompted the country’s Energy Market Authority to ask consumers to conserve energy, and to extend measures that reduce the impact of rising costs on businesses until June, according to its website.
