ST Explains: How to cut your electricity and fuel costs as prices rise amid Iran war

Follow our live coverage here.

SINGAPORE - The US-Israeli war with Iran, which has effectively closed a waterway critical to oil supplies, has sent shockwaves through global energy markets, with Singapore already feeling the ripple effects.

Fuel prices across land, sea and air transport have climbed sharply, with petrol prices surpassing the highs seen during the 2022 Ukraine crisis.

Much of this pressure stems from the near-total closure of the Strait of Hormuz, a critical shipping route through which about a fifth of global crude oil passes.

Last week, Minister-in-charge of Energy and Science & Technology Tan See Leng urged households to conserve energy, warning that electricity tariffs are expected to rise.

Prime Minister Lawrence Wong added that further support measures, such as utility rebates, could be rolled out to help households and businesses cope if conditions worsen.

The Straits Times looks at measures households can take to reduce electricity and fuel consumption amid rising costs.

1. Use energy-efficient appliances

Dr Tan called on Singaporeans to switch to more energy-efficient appliances, which include air-conditioners, refrigerators and washers.

Under the Mandatory Energy Labelling Scheme, the number of ticks on the energy labels indicates how efficient an appliance is. An appliance is considered more energy-efficient when it uses less electricity to produce a particular output, compared with another appliance that uses more electricity for the same output.

According to the National Environment Agency (NEA) website, Singaporeans can save around $59 a year if they switch to a four-tick refrigerator from a two-tick refrigerator.

2. Stay cool using hybrid cooling

Households can beat the heat while conserving energy by setting the air-con at a higher temperature and turning on the fan at the same time.

Known as the “hybrid cooling” method, turning on the fan can help to distribute cool air evenly, enhancing the air-con’s cooling effect even with the thermostat set at a higher temperature, said Mr Alvin Ee, a research fellow at the Energy Studies Institute of the National University of Singapore.

The fan also helps to draw warm air from the surface faster, reducing the air-con’s workload and energy consumption.

Mr Ee added that an air-con running in “cool” mode helps reduce the temperature in a warm and humid space, while “dry” mode is recommended for a space that is humid but at a relatively comfortable temperature. Dehumidifying the air in “dry” mode consumes less energy compared with the “cool” mode, he said.

3. Switch off appliances when not in use

Appliances left on standby – such as television sets, set-top boxes, speakers and microwave ovens – can consume a significant amount of power.

A 2024 DBS report found they can account for up to 10 per cent of one’s electricity bill. For instance, DBS estimated that leaving the water heater on unnecessarily could cost about $110 more per year.

Similarly, a 200-watt desktop left running for eight hours overnight could add roughly $175 a year to one’s electricity bill, based on estimates by NEA.

4. Choose smart alternatives

Small habit changes can lead to savings over time.

For instance, NEA estimates that households can save $30 a month on electricity by switching from an electric air-pot to boiling water only when needed and storing it in a thermal flask.

Switching to LED lighting – while more expensive upfront than conventional light bulbs – can be more economical in the long run.

Estimates from DBS suggested savings of up to $35 per bulb a year as LED bulbs generally use less electricity for the same level of brightness as other types of bulbs.

Home cooks can save about $103 a year by switching from a gas hob to an induction hob, which is three times more efficient, according to NEA.

5. Achieve optimal fuel consumption

Drivers can reduce fuel consumption by accelerating gently, as vehicle engines burn the most fuel when moving off from a standstill.

Avoid prolonged idling – if waiting more than two minutes, switch off the engine. Reducing unnecessary weight in the vehicle, such as unused racks or heavy items, and ensuring tyres are inflated to the correct pressure, can also improve fuel efficiency.

On cars with manual transmission, coasting in gear will shut down fuel supply in fuel-injected cars.

If possible, those who drive electric vehicles should use the regen brake, which turns kinetic energy into electricity by reversing the process that drives the car forward, said Singapore University of Social Sciences Associate Professor Walter Theseira.

Motorists should also avoid downgrading from the usual 95- and 98-octane fuel to 92-octane to cut cost.

This could cause an engine to “knock”, which is when there is spontaneous combustion occurring before the spark plug has fired. Engine components like the piston, valves and combustion chamber will be damaged.

6. Smart interior design choices

Simple interior design choices can reduce energy use.

According to a 2024 NEA report for new home owners, choosing light colours, like white, cream and beige, can help keep homes cool naturally as these colours reflect heat better than dark ones.

Using partitions can minimise the space to be cooled by an air-con.

Curtains or blinds over windows, or solar window films, can help block unwanted heat from the sun. A television set can be placed perpendicular to any windows to reduce glare, so the screen brightness can be lowered to save energy.