Singapore Electricity Tariff Jumps Up to 30% from July, June 19

Singapore’s Energy Market Authority confirmed that regulated electricity tariffs will rise significantly starting July 2026, with analysts projecting increases between 20% and 30%. The current tariff of 29.72 cents per kilowatt-hour will jump due to elevated natural gas prices caused by the Iran conflict. The hike affects 62.8% of households that use the regulated tariff, even though the US-Iran peace deal signed June 17 may eventually lower global energy costs.

Why the Tariff Is Rising Despite the Peace Deal

Singapore’s regulated tariff is calculated based on average fuel costs from the first two and a half months of the previous quarter. The July tariff revision reflects fuel prices from April to mid-June, when global energy markets were still strained by the Iran conflict. The US and Israel attacked Iran on February 28, striking energy infrastructure in the Gulf and closing the Strait of Hormuz, through which one-fifth of the world’s oil and gas supplies normally flow. This lag in the tariff calculation means households will not yet feel the benefit of lower prices from the June 17 US-Iran peace deal.

What the Increase Means for Household Bills

S&P Global Energy analyst Amanda Kang expects the tariff to rise 20% to 25%, which could add SGD 30 to monthly electricity bills for a four-room HDB flat. The average monthly bill for such a flat currently stands at around SGD 88. The highest estimate from analysts reaches 30%, though some project increases in the mid-single digits. Eligible HDB households will receive up to SGD 190 in U-Save support and up to one month of S&CC rebate in July to cushion the impact.

Singapore’s Energy Dependence and Options

Singapore relies heavily on imported energy, with natural gas accounting for 95% of electricity generation. In 2025, 43% of gas imports came from Malaysia and Indonesia through pipelines, while 57% arrived as liquefied natural gas from other countries including Middle Eastern nations. Households on the regulated tariff buy electricity from SP Group. Those seeking to avoid future tariff increases can switch to fixed-price plans through electricity retailers, which allow customers to lock in rates for the contract duration. As of June 1, 37.1% of households were already on fixed-price plans.

When Relief May Come

The US-Iran peace deal signed June 17 aims to reopen the Strait of Hormuz within 30 days, which should gradually lower global oil and gas prices. However, changes in global energy markets typically take several months to flow through to Singapore’s quarterly tariff revisions. The October 2026 tariff revision will reflect fuel costs from July to mid-August, when prices may have already begun falling. Households considering a switch to fixed-price plans should compare current retailer offers against the expected tariff spike.

Final Thoughts

Singapore households face a 20-30% electricity tariff increase from July due to fuel costs locked in before the Iran peace deal. The hike will add around SGD 30 monthly to typical HDB bills, though government support and fixed-price plan options offer some relief.

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