Singapore households will soon pay less for electricity but more for bus and train journeys – with energy costs cited as a key reason for both movements.
It is an apparent contradiction: From Oct 1, the household electricity tariff falls 10.4 per cent to 28.59 cents per kilowatt hour because of lower fuel costs. Yet from Dec 26, public transport fares will rise 7 per cent, with adults paying 12 or 13 cents more per journey, largely because of higher energy costs.
The explanation lies largely in timing.
The Public Transport Council’s (PTC) fare formula considers costs from July 2025 to June 2026, when energy prices rose substantially amid the Middle East conflict. Electricity tariffs, however, are reviewed quarterly, and the latest reduction reflects more recent easing in fuel prices.
Mr Rajiv Biswas, CEO of Asia-Pacific Economics, said the transport increase reflected higher energy prices, particularly in the first half of 2026.
“In contrast, the decrease in electricity tariffs is a quarterly review, based on lower oil and gas prices in the previous three months,” he said, cautioning that electricity prices could change again depending on geopolitical developments.
Entrepreneur and Singapore Indian Chamber of Commerce and Industry treasurer S. Venkita Padmanabhan said consumers understandably wondered why the two costs were moving in opposite directions.
“Electricity tariffs reflect the more recent fall in fuel costs, while transport fares take into account earlier cost increases, wages and adjustments held back in previous years,” he noted.
While welcoming cheaper electricity, he added: “Every fare increase adds up for those travelling daily.”
Financial services manager Swarna Kalyan of Phillip Capital said the lower electricity tariff might appear to compensate for higher transport fares, but questioned whether the relief would last.
“The main thought on my mind is: Are essential services remaining affordable relative to household incomes?” she said, adding that families needed to plan their finances prudently.
The electricity reduction is expected to cut the average monthly bill of a four-room HDB household by $12.99 before GST. Meanwhile, a Tanah Merah-Bedok MRT journey will rise from $1.28 to $1.40, while Tanah Merah-Jurong East will cost $2.55 instead of $2.42.
Ms Saloni Bajaj Singh, head of medical admissions and strategy at Prep Zone Academy and a green ambassador, said the increase would add to cost-of-living pressures.
“Taxis have become prohibitive, so it has become imperative to take public transport,” she pointed out.
For her, cheaper electricity offers little consolation because haze conditions mean greater air-conditioning use.
The PTC said the 7 per cent increase was less than half the maximum 14.7 per cent allowed. Public Transport Vouchers will also rise from $60 to $80, with another 60,000 households becoming eligible.
For consumers, the irony remains: Some relief at home, but a higher price for getting around.
