Increase in Electricity and Gas Tariffs for July to September 2024 Despite Drop in Global Oil Prices

50 Mr Christopher de Souza asked the Deputy Prime Minister and Minister for Trade and Industry why electricity and gas tariffs have increased for the period from 1 July 2024 to 30 September 2024 despite the drop in oil and gas prices globally.

Mr Gan Kim Yong: Changes in electricity and gas tariffs broadly reflect movements in fuel prices, which form a significant component of the overall tariff. The tariffs are set using the average of daily fuel prices in the preceding quarter. For example, the tariffs for July to September are set using average fuel prices between April and June.

The fuel cost component of tariffs increased by about 1% from the first to the second quarter of this year. Accordingly, there was an increase in tariffs from the second to the third quarter of 0.3% for electricity tariffs and 1.3% for gas tariffs.