To Mitigate Impact of Global Oil Price Surge, Singapore Distributes Cash Aid and Fuel Vouchers

SINGAPORE, KOMPAS.com - The Singapore government is distributing cash aid and fuel vouchers to mitigate the impact of the global oil price surge.

This policy forms part of a support package worth nearly S$1 billion, equivalent to approximately Rp13.34 trillion.

Senior Minister of State for Finance Jeffrey Siow announced the measures on Tuesday (7 April 2026).

The package was prepared in response to rising energy costs due to conflicts in the Middle East.

“We do not know how long the conflict and its economic impact will last, but the government recognises the situation,” Siow said.

The policy aims to buffer the direct effects of higher energy prices on the cost of living and transportation operations.

Incentives for businesses have also been expanded. The corporate tax rebate has been increased to 50% from the previous 40%.

Deputy Prime Minister Gan Kim Yong stated that the economy remained sufficiently resilient in the first quarter of 2026, although pressures are beginning to mount.

Energy dependence remains high. Around 95% of Singapore’s electricity comes from imported natural gas. Approximately 9% of this year’s supply originates from Qatar.

The government has not yet tapped into the national energy reserves, which consist of natural gas and diesel. Options for replenishing reserves are still under review.

Singapore maintains its position as a global energy hub. The country is the world’s third-largest oil trading centre and the sixth-largest refinery export hub.

“This keeps Singapore relevant in international energy trade, and it enables us to continue having access to crude oil,” said Shanmugam.

The government projects a fiscal surplus of S$8.5 billion for the 2026 fiscal year.