Singapore’s Energy Market Authority (EMA) has announced that electricity tariffs for the third quarter of 2026 will rise by 17% compared to the previous quarter. This increase is attributed to the earlier surge in natural gas prices, a consequence of the ongoing conflict in the Middle East. The rise in tariffs, which excludes Goods and Services Tax (GST), surpasses the initial projections of 13–15% made by UOB Global Economics and Markets Research.
The electricity tariffs are composed of four main components: energy costs, network costs, market support services fee, and the market administration and power system operation fee. Energy costs, which include power generation and fuel costs, are the most significant factor. In Singapore, electricity is primarily generated using imported natural gas, which is linked to oil prices through commercial contracts.
Approximately 63% of Singaporean households are on regulated tariffs, whilst others are on fixed-price plans offered by electricity retailers. Following the escalation of the Middle East conflict in February, several retailers have increased prices on new contracts and withdrawn discounted plans.
Despite the unexpected rise in tariffs, UOB maintains its core inflation forecast for 2026 at 1.9%. However, a slight upward adjustment to the baseline projection has been made. With Brent crude oil prices recently easing to an average of US$76 per barrel, UOB anticipates a 7–8% reduction in electricity tariffs in the fourth quarter of 2026, assuming an average oil price of $80 per barrel.
