More buzz around EVs, alternative energy sources due to Iran war: OCBC chief sustainability officer

SINGAPORE - People will be looking for more alternative energy sources in the future, as the Iran war shows how countries and companies are over-reliant on oil, said OCBC group chief sustainability officer Mike Ng.

Oil prices have gone over US$100 a barrel, as the war caused an effective blockade of the Strait of Hormuz, through which about 20 per cent of the world’s oil supplies pass.

The rising price of oil hits consumers where it hurts – petrol prices, their electricity bills and even day-to-day necessities like food and plastic products.

Ng said: “The recent conflicts have shown us that energy actually sits quietly behind almost every aspect of our daily lives, so when energy prices move, everything from food prices to online shopping costs can move with them.”

With increasing prices due to the energy crisis, Ng thinks this could lead to more interest in electric vehicles (EVs), cleaner sources of electricity and gas, and even more home owners installing solar panels.

The full energy transition will take several decades and its progress will not be linear, Ng said.

Noting that the shift from coal to oil took 50 to 80 years, he added: “The energy transition is not a sprint where one fuel suddenly wins, but rather, it’s a long rewiring of the global system, global economy.”

But the move towards alternatives to oil is definitely one the world is making.

The fact that alternative energy sources have also become more economical and affordable for consumers gives him confidence in the transition.

“If you look at solar and battery (power), they have become significantly cheaper over the last decade in some markets,” he said, noting that the cost of solar energy has fallen some 90 per cent over the past 10 years.

He said that OCBC has also heard from solar panel installation companies that they have fielded more enquiries and done more work since the current crisis started at the end of February, when the United States and Israel launched air strikes against Iran.

“The marginal cost of production is very low, for the simple reason that sunlight is free, and when it comes to solar panels, maintenance cost is also very minimal,” he said.

The same trend can also be seen in the transport and mobility sector, as the prices of EVs and batteries gradually decline, while petrol prices go up.

Replacing petrol use with EVs

Even before the crisis, consumers have been showing an interest in alternative energy sources, he said.

OCBC’s Eco-Care car loans, which offer preferential rates for those who want to buy an electric car, increased more than twentyfold from 2021 to 2025. Loans for buying used EVs also doubled in 2025.

In the first three months of 2026, EVs accounted for over 57 per cent of new cars registered in Singapore.

Electric vehicles will become increasingly common as petrol prices hit drivers’ wallets, Ng said, adding that we could soon move from “a society that pumps to a society that plugs in”.

“Consumers may not wake up thinking about geopolitics, but they certainly notice it at the petrol station,” he said.

“This is where they feel the impact most emotionally, because petrol prices are visible every day.”

But Ng said EVs are not a “one size fits all” solution.

Those working in transportation and delivery might also require other types of vehicles to suit their needs, especially if the vehicles will be used heavily and for many hours a day.

“The important point is that consumers are becoming more conscious of energy efficiency and energy independence in ways that they had not before,” he said.

Electricity bills and cooking gas

Electricity and gas tariffs have risen with the increased energy costs.

The latest revision to the tariffs from April to June showed that the average monthly electricity bill for those living in four-room HDB flats will increase by $1.96.

“Geopolitics has done what climate debates sometimes could not, which is to make energy personal,” Ng said.

“In many countries, electricity tariffs and gas prices have risen because utilities are exposed to global fuel markets. So, what is interesting now is that households are increasingly looking for ways to gain more control over the energy cost.”

Governments are also pushing for greater electrification and trying to move homes from gas cooking towards electric systems, he said.

“The broader trend is clear: Consumers want energy that is not only cleaner, but also more stable and predictable in price,” he added.

Ng himself drives an EV which he charges using energy delivered from the solar panels that now line his rooftop.

He got into these alternative forms of energy before the current crisis.

“Now I’m so glad I don’t have to go to a petrol kiosk,” Ng said.

Shipping prices and airfares

It is harder for some sectors, such as aviation and shipping, to find immediate solutions to the rising fuel prices.

Singapore Airlines said that jet fuel prices have more than doubled due to the energy crisis. While airfares have increased, it is not enough to fully cover the rise in jet fuel prices.

Airlines are looking into sustainable aviation fuel, which is made from renewable feedstocks rather than fossil fuels. But this is still not available in a widespread way.

Meanwhile, bunker fuel prices have also spiked, affecting the shipping industry.

“In the case of shipping, consumers may not directly see the fuel cost, but they feel it through higher prices for imported goods and services,” Ng said.

The maritime industry is actively exploring alternative fuels, such as biofuels like biodiesel, as well as methanol, ammonia and even green hydrogen.

But the technologies and infrastructure for these alternatives are still developing, he added.

Can we move away from oil?

Ng said oil is not just an energy source, but a commodity that economies are modelled around. Oil and gas are used in manufacturing, aviation, petrochemicals, shipping, and products like plastics, fertilisers and cosmetics.

Global infrastructure also supports oil, with ships, ports, refineries and pipelines.

“Replacing the entire system is like rebuilding the circulatory system of the global economy, while the entire system is still running at full speed,” he said.

Most importantly, energy has to be reliable rather than intermittent, which means that systems of storage and grid reliability have to be developed before oil dependency is significantly reduced.

In the more distant future, there might be a global split between oil-producing countries, and those that do not produce oil and want to reduce their reliance on it.

“So, what we could be seeing is a bifurcation of some major economies into the petrostates, the US, Russia, and the Middle East, and the electrostates, Europe and China,” he said.

But he added that this transition will not happen overnight and one energy source will not replace another entirely. A hybrid system is likely.

Above all, Ng said a successful energy transition must be economically inclusive.

“If the transition becomes too expensive, too fast, or too unequal, there’s going to be a risk of a social backlash,” he said.

“The conversation has evolved from simply how fast can we transition, to asking how we can transition in a way that remains affordable, secure, and politically sustainable.”