Singapore electricity rates to increase 4.98% from Jul 2008

This article belongs to the Singapore inflation watch story arc.

channelnewsasia.com -> spservices.com.sg (pdf):

Electricity tariffs will go up by 4.98% or by 1.19 cents per kilo watt per hour (kWh) for all households from the next quarter, beginning July 1 [2008]. Singapore Power said the hike is due to higher electricity costs arising from higher fuel prices. The electricity tariff is revised every quarter. Coming at the back of rising inflation and an overall increase in the cost of living, not everyone is taking the news well - low-income families are expected to be hardest hit. And for motorists, pump prices have gone up again - petrol prices are up 5 cents a litre and 10 cents for diesel, the 13th consecutive increase since last July.

- There's really no surprise here, as Singapore electricity prices are linked to natural gas prices since that's where 80% of our electricity comes from, the pricing of that natural gas is currently in turn linked to fuel oil prices, which is in turn linked to world crude oil prices. And crude oil prices have been setting records in recent months, as we all know.

With this increase, Singapore domestic household electricity tariffs will be going up from 23.88 to 25.07 cents per KWh. That's an increase of 22.17% year-on-year, and a staggering 56.10% in 3 years. Just as I maintain that we haven't seen anything yet in crude oil prices and that we are going to $150, $180, $200 and beyond, we haven't seen anything yet in electricity prices. We are going to 30, 40, 50 cents per KWh and beyond.

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