Well, the recent increase in fuel is beginning to show it’s domino effects – starting from the raise in electric tariffs. This means that every household in Singapore that uses electricity will be paying more for every single second of electricity they use. Fuel is also used widely in other industries, especially in the transportation sector – hence I believe strongly that a raise is eminent.

FROM next month, electricity tariffs will go up nearly 6 per cent, to 22.62 cents per kilowatt-hour (kwh).

This is the highest price hike since 2001. The revision is the result of soaring fuel prices, said Singapore Power which released the January to March tariff on Wednesday.

The 1.24 cents per kwh increase works out to between $1.30 and $5.50 a month for one- to five-room HDB flats.

Between Jan 1 and March 31 next year, Singapore Power expects fuel prices to go up by some 10.5 per cent, from $87.46 per barrel to $96.64 (US$66.28) a barrel.

Electricity prices are adjusted every three months. The last increase was made for the October-to-December quarter where electricity costs went up between $1 to $4.20 a month for one- to five-room HDB flats.

Members of Parliament The Straits Times spoke to agreed that with the rising fuel oil prices, the electricity tariff hike is inevitable.

Dr Lily Neo, an MP for Jalan Besar GRC, said lower-income families and the elderly ‘will definitely feel the pinch’.

She noted: ‘Already, many don’t switch on the lights at night to save the extra few cents. What we can do is offer financial help such as NTUC vouchers and food and grocery vouchers to tide them over.’

Article obtained from straitstimes.com on 27th December 2007

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