Singapore Electricity, Gas Prices to Decrease from July!

Households in Singapore expect smaller electricity and gas bills from July to September due to lower energy and fuel costs. Electricity bills will decrease by 0.65 cent per kilowatt-hour (kWh), while gas prices will fall by 0.44 cent per kWh, before goods and services tax. This comes after grid operator SP Group announced on June 30 a 2.3 per cent drop in the electricity tariff for households from the previous quarter. An average four-room Housing Board household may see a $2.36 drop in its monthly electricity bill before GST. 

City Energy, the producer and retailer of piped gas, said in a separate statement that the gas tariff will drop from 22.72 cents per kWh to 22.28 cents per kWh due to lower fuel costs, compared with the previous quarter. 

SP Group and City Energy review the electricity and gas tariffs every quarter based on guidelines set by the electricity and gas industry regulator, Energy Market Authority.The energy cost component of the electricity tariff for each quarter is set using the average natural gas prices in the first 2½ months in the preceding quarter. The fuel cost component of the gas tariff for each quarter is set using the average fuel prices in the first 2½ months in the preceding quarter. The electricity and gas tariffs may fluctuate quarter to quarter due to volatile global fuel prices driven by geopolitical factors, such as the ongoing conflicts in the Middle East. 

Although prices may have fallen but benefits are uneven. Residential tariff rates have fallen and may lock-in to fixed-rate plans. But carbon tax impact is probable in the future. Industrial and commercial consumers are biggest winners. Large factories, data centres and SMEs benefit. But like residential users, this group also faces carbon tax in the future. 

For Malaysia, it’s the other way around (tariffs are up!) and TNB faces a huge tax burden because the courts decided recently it is not a company involved in manufacturing of electricity but a utility. This was a major victory for IRB. And will TNB’s CEO resign? Don’t bet on it. This is Malaysia. 

Reference:

Singapore electricity, gas prices to decrease from July to Sept due to lower energy and fuel costs, Calista Wong, The Straits Times, updated 30 June 2025