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Electricity tariffs will go down by 0.65 cents per kWh, gas tariffs will go down by 0.44 cents per kWh

Singaporean households will enjoy cheaper electricity and gas costs over the next three months as tariffs are set to go down from July to September 2025.

This comes as energy and fuel costs have declined since the last quarter.

Source: Mike Enerio on Unsplash

Electricity tariffs to go down by 2.3%

In a news release on Monday (30 June), SP Group said the lower prices will take effect from 1 July to 30 Sept 2025.

They’ll drop by 2.3%, or 0.65 cents per kilowatt hour (kWh), compared with Q2 2025.

For households, this translates to a decrease from 28.12 to 27.47 cents per kWh during the period, before taking into account the 9% Goods & Services Tax (GST).

Families living in four-room HDB flats will see their average monthly electricity bill go down by S$2.36 before GST, SP Group added.

Source: Mike Enerio on Unsplash

The overall electricity tariff, including tariffs for non-households, will decrease by an average of 2.4%, or 0.65 cents per kWh, before GST compared with Q2.

Sharp decrease in electricity tariffs over the last year

The lower tariffs are in line with a sharp decrease in electricity tariffs over the last year.

The last time they went up was in Q3 of 2024.

In Q2, electricity tariffs remained the same at 28.12 per kWh, but they dropped steeply in Q1 and in Q4 2024.

Source: SP Group

Gas tariffs will drop to 22.28 cents per kWh

In a separate news release also on Monday (30 June), City Energy, which produces and retails piped gas, said the gas tariff for the next three months will drop to 22.28 cents per kWh before GST.

This is compared with the current 22.72 cents per kWh in Q2 — a fall of 0.44 cents per kWh.

Soruce: City Energy

The new rates will take effect from 1 July to 30 Sept 2025.

In Q2 2025, gas tariffs remained the same at 22.72 cents per kWh.

Decrease in electricity & gas tariffs due to lower energy & fuel costs

SP Group said the decrease was due to lower energy costs, which make up a component of the electricity tariff.

Energy costs are set for the coming quarter using average natural gas prices in the first 2.5 months of the quarter before that.

SP Group also reviews electricity tariffs every quarter based on guidelines set by the Energy Market Authority (EMA), which regulates the electricity and gas industry.

Similarly, City Energy cited lower fuel costs for the decrease in gas tariffs.

Fuel costs, a component of the gas tariffs, are also set using average fuel prices in the first 2.5 months of the preceding quarter, with City Energy reviewing gas tariffs quarterly based on EMA guidelines.

Both SP Group and City Energy added that geopolitical factors, “such as the ongoing conflicts in the Middle East”, would cause the respective tariffs to fluctuate from quarter to quarter.

This is due to such geopolitical factors causing global fuel prices to become “volatile”, they noted.

Also read: Electricity & gas prices set to drop by 3.4% in Q1 next year: SP Group

Electricity & gas prices set to drop by 3.4% in Q1 next year: SP Group

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