Singapore will increase gas and electricity tariffs next quarter, days after announcing a hike in water rates starting April 2024, adding to the burden of consumers already grappling with high prices.
SP Group will raise the average electricity price by 3.7% for the three months through December compared with the previous quarter, according to a company statement. Gas tariffs for households will go up by 51 cents per kilowatt hour, according to City Energy.
Rising utility costs are the latest price pressures to hit residents in Singapore, where rentals remain elevated and even cheap hawker meals are disappearing, prompting the government to announce fresh support this week of $1.1 billion worth of handouts. Higher prices may also revive core inflation that has already eased to a 16-month low.
SP Group said the power rate hike covers the increase in imported fuel, as natural gas and oil prices began to rise over the summer amid tightening global supply.
While this is the second consecutive quarter of gains, the power tariff is still about 3% lower than the same quarter last year at the height of the energy crisis.
About 95% of Singapore’s power is generated with imported gas. Singapore updates its power rate on a quarterly basis.
