Rising Costs in Singapore | Rising Prices for Major Items in Singapore
Budgetingby Priyadarshini 22 February 2022
The GST hike has been the talk of the town in the run-up to Budget 2022, which was given on February 18th, along with the typical bread and butter issues like inflation and growing living costs. Many Singaporeans have already begun to feel the strain in December 2021 and January 2022. For example, hawker stalls have already begun raising their rates in January 2022 to keep up with the rising cost of everything. We tell you about the rising costs in Singapore.
Here are five major items that will cost higher in Singapore in 2022:
Rising Costs in Singapore
Petroleum and Natural Gas
Oil and gas costs are rising all around the world. And we can’t even blame it on the GST this time. This price increase is the result of a variety of circumstances, including extreme weather, limited supply, and increased demand, particularly from China, in the aftermath of the Covid-19 recession. Oil prices increased by about 50% in 2021 and are anticipated to rise even further this year. To add salt to the wound, Singapore raised gasoline taxes in 2021.
Vehicle owners have been the first to feel the pinch, but everyone else will soon follow suit. Rising oil costs will eventually result in higher public transportation fares, vehicle rental fares, taxi fares, and flight ticket prices. Furthermore, because most businesses rely on transportation and travel to some extent, increased oil prices will raise corporate costs, implying that we will wind up paying more for everything from consumer goods to food.
Higher gasoline prices will smack car owners in the face. To make matters worse, CEOs are currently at an all-time high, with motorbike CEOs surpassing $10,000 for the first time in history. Vehicle demand will remain high since private transportation is more appealing than crowding into public transportation during a pandemic, and more people are resorting to motorcycles to work as food delivery riders.
Prices for MRT, bus, cab, Grab, and Gojek
Transportation is particularly sensitive to oil prices, so unless you do most of your travelling on foot or by bicycle, getting from point A to point B will become more expensive, whether you use public transportation or choose to call a cab or private rental car. Comfort Delgro has already announced a fare increase, and we’re waiting for SMRT, SBS, and other transportation firms to follow suit. SBS has announced that they would begin buying cleaner-energy public buses in the near future. However, considering that the electrical sources in this area are not particularly clean, this will not result in decreased fares.
Water Charges – Rising Costs in Singapore
By 2030, the government intends to lower home water consumption to 130 liters per capita per day. Unfortunately, they can’t control the weather, so we have to take three showers every day. As a result, they’re more inclined to try to restrict household consumption by boosting costs.
The majority of Singapore’s electricity is generated by imported natural gas, the price of which is linked to oil prices. In other words, expect to pay more for electricity this year. SP Group has already announced an increase in electricity and gas pricing for the first quarter of 2022, and other energy suppliers are expected to follow suit. Hopefully, they will be able to reinvest some of this money in green efforts in order to achieve carbon neutrality/zero status.
Throughout the pandemic, property prices have risen as Singaporeans hurry to acquire new homes so they may finally have the room to WFM in peace. Despite the new cooling measures implemented in December 2021, residential property prices are likely to grow 1% to 3% in 2022. Rents are also likely to climb, with JLL forecasting a 5% to 7% increase in 2022.