Change in cost of town gas

Change in cost of town gas

Marginal rise in gas tariff after last quarter’s fall.

29 Jul 2016

The Treasury. Photo by Luke Yeo

Gas Tariffs

How are Town Gas Tariffs calculated?

Town gas tariffs are meant to reflect changes in the cost of producing and transporting town gas. They are reviewed and approved every quarter by the Energy Market Authority (EMA) to ensure that town gas consumers are not overcharged.

Marginal increase next quarter

There will be a marginal increase in town gas tariffs for the quarter from 1 August to 31 October 2016. The increase for this quarter is due to the higher cost of fuel (specifically natural gas and naphtha) used to produce town gas. The fuel cost has risen by 26.2 percent compared with the previous quarter. Despite this increase, the tariff is still lower than the preceding quarters from August 2015 to April 2016. The town gas tariff for August to October will remain lower than in earlier quarters, from August 2015 to April 2016 (see graph above).

How is Government helping?

The Government provides Singaporean households with a GST Voucher – Utilities Save (U-Save) rebate, to help lower living expenses. Singaporean households can look forward to the following vouchers, to offset the increase in town gas tariffs.

GST Voucher - U-Save Rebates

Source: MTI

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