SINGAPORE, March 31 (Xinhua) -- Singapore residents will face higher electricity and town gas tariffs in the second quarter, with further increases likely later this year as the Middle East conflict drives up global fuel costs, the Energy Market Authority (EMA) said on Tuesday.
Singapore sets regulated electricity and town gas tariffs each quarter based on the average cost of fuel over the first 2.5 months of the previous quarter. That means tariffs for April through June largely reflect fuel prices from January to mid-March. Town gas refers to the piped fuel mainly used by households and businesses for cooking and heating.
Natural gas prices began rising more sharply after Feb. 28 as the conflict strained global supply chains, so second-quarter tariffs have only been partially affected by the recent surge, said the EMA.
However, the EMA said fuel prices are expected to stay elevated given ongoing disruptions to oil and gas production in the Middle East, warning of "further and potentially sharper increases" in tariffs in the coming quarters.
Consumers on retail electricity contracts are also likely to face higher prices when renewing their plans, the agency said.
Singapore, which is highly dependent on energy imports, generates about 95 percent of its electricity from imported natural gas, which is also the main feedstock for town gas, it said.
"Household and business consumers must therefore be prepared for higher and more volatile energy costs," the EMA said, urging greater use of energy-efficient appliances and conservation measures. ■
