Price hikes, travel disruptions: Three ways the Middle East conflict is hitting S’poreans
With rising transport and electricity costs fuelled by the ongoing US-Israeli conflict with Iran, Singaporeans are starting to feel the pinch. But what do these movements mean for the average household?
Here are three ways global tensions are affecting daily life, from petrol prices to travel plans.
Oil prices on the rise
An attack on Iran by the US and Israel on Feb 28, followed by Iran’s retaliation with its own strikes, led to the closure of the Strait of Hormuz — a key shipping lane that accounts for about one-fifth of the world’s oil supply.
This has disrupted global energy markets and forced output cuts at Singapore’s oil refineries on Jurong Island, which supply about 20 per cent of Australia’s refined oil, potentially pushing up fuel costs across the region.
Locally, rising costs are being passed on to consumers. According to Motorist Singapore, petrol prices were largely stable at $2.88 per litre in late 2025.
But by March 2026, prices had surged to between $3.38 and $4.11 per litre at Caltex, Esso, Shell, SPC, and Sinopec stations, according to data from the Consumers Association of Singapore’s Price Kaki app.
Mr Chan, a 55-year-old architect who drives to work daily, said his weekly fuel expenditure has increased by about $60 — from $120 to around $180.
“It’s ridiculous. This really brought to the forefront how vulnerable we are when it comes to oil and energy,” he said. “And it’s not just fuel — chemicals, bitumen, our roads — everything is oil-based.”
Higher fares for private-hire rides and taxis
Those who do not drive are not spared from price hikes.
Ride-hailing platform Grab announced a 40-cent fare increase on March 31 to defray fuel expenses for drivers. The surcharge will run until May 31. Grab said it will not take a commission from the amount paid.
Singapore’s largest taxi operator, ComforDelGro, has also temporarily raised fares from March 24 to May 31.
Passengers using its Zig app will now be required to pay a driver fee of 50 cents for fares below $15, and 80 cents for fares $15 and above.
Online, netizens expressed frustration and scepticism over whether the increase would truly be temporary.
“Everything going up except salaries. Transport, food, housing. Feels like just existing in Singapore is getting more expensive every month. And “temporarily” always means never coming back down,” one lamented.
One expressed resignation: “I am... tired of living through historical times.”
Flight cancellations across the region
For travellers, air traffic disruptions are also taking a toll, with flight cancellations being announced almost every week.
On March 31, Singapore Airlines said in a Facebook post that two flights to and from Dubai would be cancelled until May 31.
“Our flights between Singapore and Dubai have been cancelled until 31 May 2026 following an assessment of the geopolitical situation in the Middle East,” the airline added in response to a comment on the post.
This follows the grounding of two other flights announced on March 20.
As the situation remains fluid, other SIA flights may be affected, SIA added.
Amidst the volatile geopolitical situation, some travellers who have scheduled flights are reconsidering their plans.
Tan Mui Hui, a 29-year-old media professional, said she cancelled her two-week solo trip to Spain as the flight transited in Doha, Qatar, citing safety concerns.
“The idea of potentially getting stuck in the Middle East alone is also not an exciting one,” she said, adding that she decided to book a trip within Asia instead.
“Seems like Spain and I aren’t fated to meet now, but I hope to travel there one day,” she added.
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