Singapore's state-owned power group, SP Group, announced on Tuesday that electricity prices for the third quarter of 2026 will increase by 17% due to a surge in imported natural gas costs. The nation relies on imported natural gas for 95% of its electricity generation.

The specific details are as follows:

Due to rising energy costs, the pre-tax electricity tariff for households will increase by 17.0% compared to the previous quarter, rising to 0.0464 Singapore dollars per kilowatt-hour (equivalent to 0.036 US dollars).

Electricity tariffs are reviewed and adjusted quarterly according to rules set by Singapore's Energy Market Authority.

The authority stated, "Due to the conflict in the Middle East, natural gas prices have risen sharply since the end of February and have remained high from April to June."

The authority added, "The increase in natural gas costs will drive up production costs for electricity and town gas in Singapore."

It noted that the situation in the Middle East remains uncertain; if tensions ease, fuel prices are expected to fall, potentially leading to a reduction in electricity and town gas tariffs for the fourth quarter.