Gas price spikes could cause Singapore’s wholesale electricity costs to more than double their early 2026 levels, reaching approximately US$260.8 per megawatt-hour. Under extreme market conditions where fuel prices hit historical peaks, these costs could surge to as much as US$770 per megawatt-hour, according to the authors of the newly released report.
The report states that “gas-fired electricity generation costs could rise to around US$260.8/MWh, based on the prevailing JKM price and other cost components,” which represents a significant jump from February 2026 prices. The analysts further note that “a gas price rise to US$100/MMBtu could spike the cost of gas-fired electricity generation to US$770/MWh.”
Because Singapore generates 95% of its power from natural gas, the price of electricity is closely tied to the global market for that fuel. When gas prices jump due to supply shortages or conflicts, the cost for power plants to produce electricity rises sharply, and these higher expenses are immediately reflected in the prices paid on the wholesale market.
The report “Overcoming fossil lock-in is pivotal for Asia to buffer against energy shocks” was published by the UK-based energy think tank Ember on March 23, 2026. Authored by senior energy analysts Dinita Setyawati and Muyi Yang, the briefing explores how recent geopolitical conflicts are exposing the vulnerability of Asian economies to fossil fuel price volatility and supply disruptions.
