SINGAPORE, April 4 — The economic shockwaves from the Iran war are beginning to ripple through Singapore’s everyday life, pushing up costs from electricity and fuel to transport and groceries, even as the government holds off on emergency measures, according to a report by The Straits Times (ST).
While authorities have not yet tapped into national energy stockpiles — said to be sufficient for months — Singapore Prime Minister Lawrence Wong warned of a “bumpier ride ahead”, as the conflict drives up global energy prices and tightens supply chains, the Singapore daily reported.
In response, Wong said some Budget support measures will be brought forward to “provide earlier relief” for households and businesses, with additional targeted help for sectors hardest hit, the report said. More details are expected when Parliament convenes next week.
For now, the strain is already visible — and tangible.
“The price of everything in Singapore is increasing,” school bus driver V. Parath told ST.
Electricity tariffs rose at the start of April, with warnings of sharper hikes to come, while cooking gas prices have also climbed, ST reported. Transport costs are ticking upwards too, with taxi operators and ride-hailing platforms preparing temporary fare increases to offset rising fuel expenses.
At the core of the pressure is diesel — the workhorse fuel for logistics, transport and construction — which has surged as much as 66.5 per cent to a record US$4.43 (RM17.86) per litre before discounts, according to the report. In some cases, smaller operators report prices doubling.
The spike is tied to disruptions along the Strait of Hormuz, a critical artery for oil shipments that has effectively been choked by the conflict, squeezing supplies of crude used to produce diesel and jet fuel.
The consequences are cascading through the economy.
Parath, 29, said he now pays far more than the S$1,600 he once spent monthly on diesel for his 13-seater minibus. Unable to raise fares for student passengers, he has taken on weekend work to stay afloat.
“Whatever I earn is just nice to pay off everything. I have to pay salary to my bus attendant. I have to pay for my vehicle,” he told ST.
“A lot of my friends and colleagues have sold their vehicles as they can’t cope with what is happening.
“Even for me, I am considering it. I really hope our government does something to help us with the diesel cost.”
Small businesses, too, are under mounting strain.
Interior design consultant Matthew Foo said he has had to cut his fees to remain competitive as contractors pass on higher transport costs.
“My recent chats with my contractor were about how diesel for his truck, which used to be at around S$2 plus per litre, is now S$4 plus,” he told ST.
For business owner Kenny Tan, the cost pressures stretch across multiple fronts — from higher delivery charges to pricier raw materials.
“The supplier would have gone to the farmer. The farmer uses tractors and machinery powered by diesel. That cost has now gone up for them,” he said, as quoted by The Straits Times.
“It dribbles down as apples are moved through the supply chain.”
Tan has raised the price of juice sold at his vending machines from S$2.80 to S$3, while his laundromat operations are also facing rising energy bills. To cope, he has installed remote controls on air-conditioning systems to cut usage during off-peak hours.
Still, the uncertainty looms.
“As a business owner, every day is a gamble. Every day is a risk we are taking, because we are affected directly by the situation around the world,” he told ST.
