With energy costs rising, here's how Singaporeans are changing their lifestyles and choices to adapt

For Ms Lalitha Dorairajoo, the effects of a war raging thousands of kilometres away are hitting her hard on a number of fronts. 

As a private-hire driver, the 48-year-old has seen the price of a full tank of petrol for her hybrid car shoot up from S$80 (US$63) to over S$100 in the past month, given the ongoing energy crisis caused by the Middle East conflict. 

With less money to bring home after a day's work, Ms Lalitha is looking for ways to save money at home and she's taken to having her seven-year-old sleep in the same room as her to save on the cost of air-conditioning.

"Normally, I'm not an air-con person, but this weather, the haze, it's very bad. We're not able to (stand it) without the air-con, it's like you're sitting in an oven," she said.

As the energy crisis continues to grow, CNA TODAY spoke to 55 Singaporeans aged 22 to 69 this week about how they are impacted and if they have made adjustments to their lifestyles.

Close to 64 per cent of those interviewed said they have made changes in their lives due to the ongoing crisis, with most making minor adjustments such as taking shorter showers, switching off unused appliances and not revving the accelerators in their cars more than necessary. 

A handful of these respondents, however, have made more drastic changes such as swapping to an electric vehicle, leaving their cars at home to hop onto public transport or ceasing to use air-conditioners. 

The roughly 40 per cent of respondents who have not made changes said that while they feel concerned about the crisis, it has not significantly impacted their expenditure. 

On Tuesday (Apr 7), three ministerial statements were delivered in parliament about the impact of the conflict in the Middle East on Singapore, highlighting a likely increase in prices here.

Since the US and Israel began military strikes on Iran on Feb 28, and Iran effectively blocked the Strait of Hormuz in retaliation, oil and gas prices have surged given the increased competition for whatever fuel supply is available. 

Demand for other fuel sources has also risen as a result, causing a rise across the board. 

Across Southeast Asia – where several countries are heavily dependent on oil and gas imports from the Middle East – soaring energy prices have spurred a range of responses: Thai authorities have mandated civil servants to conserve energy, even urging workers to take the stairs instead of the lift, and Laos has scaled back in-person classes to help families deal with volatile fuel prices. 

Dr Christopher Toh, an associate faculty member at the Singapore University of Social Sciences (SUSS), noted that food and energy prices typically rise during wartime as conflicts disrupt global production and trade routes, with knock-on effects across other commodities.

"The impact of the Iran war has so far been relatively contained in Singapore, with no emergency measures or work-from-home orders, unlike in many countries around the world. But the conflict, which has driven up energy costs, has seeped into daily life here, prompting the Singapore authorities to take action to ease the burden," said Dr Toh.

In Singapore, the measures to combat the energy crisis have centred on subsidies to help citizens cope during this period.

The government's nearly S$1 billion support package includes a S$200 cash relief for active platform workers, private-hire car drivers and taxi drivers. 

It has also brought forward the next tranche of S$500 in Community Development Council (CDC) vouchers by about six months and topped up the one-off Cost-of-Living special payment due in September by S$200. 

PUMPED-UP PRICES

As fuel prices rise, those whose jobs require being on the road have felt the pinch the most, with three interviewees saying their incomes are reminiscent of what happened during the Covid-19 pandemic.  

The 10 private-hire and taxi drivers CNA TODAY spoke to are opting for two very different strategies to cope with their shrinking income: Some are driving fewer hours to limit fuel consumption, while others are driving more hours to try to make up for higher costs.

While all welcomed the government cash payout for platform workers, many called it a band-aid at best and hoped for further help in managing costs such as car rental fees, pointing out that the platforms' implementing temporary fuel surcharges on fares might chase consumers away. 

A 30 per cent increase in fuel costs is only the start of 51-year-old cabby Gary Harris' problems. He, like many other drivers, attributed a dip in his earnings to fewer available customers since the Iran war started.

To combat this, Mr Harris now joins the snaking queue of taxi drivers waiting for passengers at Changi Airport. 

He said that with more drivers employing this strategy and fewer airport passengers since air travel has also been impacted by the conflict, waiting times for drivers have doubled to around two to three hours. 

"Nowadays, most night-shift drivers like me go home by 3am, because if they roam around, they waste petrol," said Mr Harris, who has also taken to getting his family of four to sit in one room to save on electricity. 

He hopes for more avenues for dialogue between the government, businesses and workers like him to "voice out (their) pain" about cost increases.

For Mr Poon Chien Fie, 55, a private-hire driver, the increased fuel cost has meant longer hours on the road, resulting in less time with his family and also less money for family outings, which have been reduced from weekly to biweekly.  

CNA TODAY also spoke to another 23 motorists and found that five of them were leaving their vehicle keys at home on occasions and turning to public transport instead.

In the past, 31-year-old Valerie Khoo would drive everywhere, be it for work, to spend time with her family or to take her two dogs for their weekly grooming sessions. But as fuel prices soar, she grabs her car keys only on Sundays for her dogs' appointments as pets are not allowed on public transport in Singapore.

"I used to drive to visit my clients' homes, (which) are a 10 to 15 minute drive away. But now, I take public transport because (fuel prices) are too high," said the wealth management consultant.

"It takes me about 30 minutes by public transport. Even though my commute time has doubled … I save so much more (money)."

However, taking the drastic measure of putting their cars aside entirely would be extremely difficult, said most drivers. 

"I still need to drive my family around and commute to work," said Mr Marcus Sia, a 35-year-old communications professional who drives an internal combustion engine (ICE) car. 

"When my son was sick and I had to travel between the hospital and home, having a car was a necessity … (and) my wife's workplace is near mine, so it makes sense for us to drive together to work and back home." 

So when fuel prices began climbing, Mr Sia did a quick search online for tips on reducing his fuel consumption, such as reducing the weight of his car and stepping on the accelerator less.

"I don't know how much that helps and if my fuel consumption really reduces much, but there's no harm trying," he said.

Meanwhile, Madam Tang Hui Ling, a 61-year-old stockbroker, has been joining other drivers in Cnergy petrol stations where prices are relatively lower.

"After (adding up) the (loyalty) discounts, I save about 33 cents per litre at Cnergy compared to other stations. That's about S$16 for a full tank," said Mdm Tang, adding that she visits the Cnergy outlet near her home during off-peak hours to avoid the snaking lines. 

Some drivers said that they also plan to swap their ICE cars for an electric vehicle (EV) upon expiry of their Certificate of Entitlement (COE) – which grants the right to own and use a vehicle in Singapore.

Madam Ruth Goi, in fact, made the switch earlier than intended. Her COE expires only in October but she decided to go ahead with trading in her car for an EV in March. 

As fuel prices continued to soar, Mdm Goi paid S$160 to fill up her car in mid-March, up from S$120 in February. Today, she estimates she spends about S$50 to charge her car.

"We would have purchased a new car later in the year and were considering whether to get a hybrid (car) or EV … but decided to get an EV earlier to save money (on fuel) and reduce our carbon output," she said.

SHUT OFF PLUGS, SWAP TO A FAN

While the people CNA TODAY interviewed are concerned about the Iran war's impact on their lives, they all said their electricity bills have yet to rise – though in all likelihood they will start to notice an increase in the coming quarters, according to the Energy Market Authority.  

With an increasingly volatile energy market, the authorities have urged businesses and households to conserve energy. Just last week, Prime Minister Lawrence Wong stressed that Singapore's energy resilience depends not just on government action but also on a collective effort.

Public sector offices are set to lead the charge and will begin setting air-conditioning temperatures to 25°C or higher, and unplugging or turning off non-essential equipment and appliances when not in use. 

While 50-year-old private-hire driver Michael Dass now drives an extra two hours to cover the increased fuel cost, he is making small adjustments like turning on the air-conditioning at home for a few hours before swapping to a fan – though these adjustments come at a cost to his comfort. 

"I don't use so much air-con at home, mostly only fan, but nowadays the weather is so hot, after you drive and you're very tired, if you can't even enjoy a bit of air-con, what's the point of earning?"

Mr Kokki Kumar, 51, another private-hire driver, also uses the fan instead of the air-conditioning at home to tighten his purse strings – a change his four children have to get used to. 

He is also worried about a rise in food prices due to diesel price surges impacting businesses.

"Nowadays, I cannot afford to drink kopi gao or kopi C, now I can only drink kosong," he quipped.

As for 65-year-old Bryan Lye, the part-time tennis coach goes the extra mile by switching off all his electric plugs, including those powering appliances like the television.

"In the past, I'd just charge my phone and leave the plug (switch on), or just switch off the television. Now, I make sure the power plug is turned off," he said.

"I think of it as an opportunity to change my habits and improve my lifestyle … save money, electricity and a bit of the environment."

Experts agreed that small individual actions add up, such as using energy-efficient appliances or not leaving devices on standby, which silently drains electricity through what is known as "vampire power".

Dr Toh of SUSS said that besides switching off devices at the power socket, people can opt for greener options, pointing to government initiatives like the Climate Friendly Households Programme – which offers incentives to purchase energy-efficient household appliances.

"For instance, using a fan instead of an air-conditioner can save about S$441 a year in Singapore," said Dr Toh.

OLD HABITS DIE HARD

But whether Singaporeans act now or hold off on adjusting to the current fuel and electricity crisis also depends on the buffers they have and how much their daily routines leave room for change.

For retiree Goh BL, 69, he is mostly insulated from the upcoming hikes in utility bills as solar panels installed on his landed property have helped him to offset electricity bills.

Given the scorching weather, the panels have helped him generate enough electricity to power his home and his EV, even leaving some excess for him to sell back to the grid.

Despite this extra S$100 to S$150 he makes from selling his excess electricity every month, Mr Goh said he still tries to opt for public transport when convenient.

Mr Goh added that as a retiree, he is concerned though that elevated transport costs arising from this energy crisis will significantly push up business costs and ultimately inflation.

"Inflation is retirees’ number one enemy because it eats up retirement 'incomes' that are more often than not generally fixed," said Mr Goh.

For Mr Roystonn Loh, a 36-year-old business owner, the fuel price increase has not yet affected how much he drives on a daily basis. 

"Even though the cost of petrol has increased, family-based routines are fixed. We can’t just cancel children’s activities. Taking public transportation with three children in tow is tiring, inconvenient and it’s the main reason why we decided to get a vehicle in the first place," said Mr Loh.

But across the board, all those who spoke to CNA TODAY acknowledged that Singapore has not felt the full brunt of the Iran war. 

Experts like Dr David Broadstock, partner at energy consultancy The Lantau Group, explained that the trickle-down consequences of disrupted fuel supplies are only beginning to be realised because the impacts "take weeks to go from source to consumer".

Many interviewees foresee the cost of living and essential goods prices rising in the near future, and several said they would take action to reduce their spending only when they further feel the pinch.

For instance, Mr Matthew Teo, 39, a financial advisor, plans to cook more at home and eat out less while Mdm Goi also said she will spend less on meals as prices climb. 

Ms Marlina Yased, a 48-year-old community leader living in a two-room public rental flat, said the government's initiatives will go some way to helping her neighbours – many of whom are platform workers hard hit by rising fuel prices. In the past month, she has received over 30 emergency requests for food and groceries through the community fridge she runs in Lengkok Bahru.

She said that convenience shops in the neighbourhood, citing higher costs from suppliers, have also begun raising prices, with basic toiletries like soap climbing from S$1.20 to S$2.

Associate Professor Ho Kong Chong, emeritus professor of sociology and anthropology from the National University of Singapore, said that low-income families and the elderly will be hardest hit by the secondary impacts of the ongoing global crisis.

"Small businesses (are already saying in the media that) they have to raise prices. We are talking about (an) increase in the electricity bill down the road," he said.

"You don't have to drive a car to be impacted. What we see as part of Singapore has always been the worries about rising costs for the poor and for the elderly, (and) this energy shock just accelerates it."

He also added that the Middle East crisis might increase the number of rough sleepers in Singapore, as well as increase unemployment, as rising prices force more businesses to close.

Acknowledging the government's efforts to alleviate the cost-of-living pressures, Assoc Prof Ho added that people could look at other ways to reduce their spending – such as having more meals at home with extended family members.

He explained that by doing so, families can benefit from buying ingredients in bulk while keeping their morale up during times of uncertainty brought about by the ongoing Middle East crisis, which fuels anxiety.

Dr Broadstock added that the government could look at odd-even licence plate restrictions to alleviate traffic, reduce fuel use and encourage more public transport usage.

South Korea is one of the latest countries to do so: Public-sector vehicles can only run every other day depending on their number plate from Apr 8.

Mr Harris, the taxi driver, has heard first-hand from tourists he picks up at the airport on how other countries have taken dire measures to cope with volatile fuel prices.

"When I hear stories like that, (I realise) we are blessed that we have not reached that kind of panic or situation, and our government still has fuel.

"There are still things that will be normal at the moment, though costs will definitely go up," he said.

Additional reporting by Baani Kaur.