Debated in Parliament on 5 Aug 2026.
Ms Lee Hui Ying asked the Minister for Trade and Industry (Energy and Industry) what is the Government's assessment of the impact that Russia's recent temporary ban on diesel will have on energy sufficiency and cost of living in Singapore, given the escalation of conflict in Iran.
Russia's ban on diesel exports will not impact Singapore's energy sufficiency. Almost all of Singapore's electricity generation use natural gas. Diesel is used as a back-up and we have sufficient reserves to meet contingency needs. In addition, Singapore produces diesel for both local consumption and export as we are a major refinery hub in the region.
However, Russia's ban, which took effect on 8 July, has further tightened global diesel supply that was already tight because of the Middle East conflict. This has exacerbated upward pressure on global diesel prices. For instance, Asia Pacific's benchmark wholesale diesel prices rose by around 33% between 7 July and 27 July 2026, bringing prices to around 68% above the levels recorded before the onset of the Middle East conflict.
Higher global diesel prices lead to higher retail diesel prices at the pump. At the same time, higher global diesel prices will raise production and transport costs for a wide range of goods and services that Singapore imports, thus adding to inflationary pressures.
The Government has recently rolled out a second support package in response to the Middle East situation, to help households cope with the rising costs of fuel and other necessities. The package includes additional U-Save rebates to defray the increase in utility bills for Housing and Development Board households, and additional Community Development Council vouchers to help households manage the costs of daily necessities.
The Government will continue to closely monitor developments arising from the conflicts in the Middle East and Ukraine.
PAPERCUTS