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The Cost Savings of Using Electric Forklifts Over Diesel Forklifts in Singapore 2025

Switching from diesel forklifts to electric forklifts provides not only significant cost savings but also environmental benefits. In Singapore, where carbon taxes are becoming a focal point for businesses, the economic and ecological advantages of electric forklifts become even more compelling. This guide provides an in-depth cost comparison and highlights the additional savings, including reduced carbon tax liabilities, that come with transitioning to electric forklifts.




Energy Costs Comparison

Diesel Forklift (3 Ton)

  • Fuel Consumption: 3.2 litres per hour

  • Diesel Cost: $1.85 per litre

  • Hourly Operating Cost:


    3.2 litres/hour×1.85 $/litre=5.92 $/hour


Electric Forklift (EP 3 Ton)

  • Energy Consumption: 7.3 kWh per hour

  • Electricity Cost: $0.30 per kWh

  • Hourly Operating Cost:


    7.3 kWh/hour×0.30 $/kWh=2.19 $/hour


Savings in Energy Costs per Hour:5.92 $/hour (Diesel)−2.19 $/hour (Electric)=3.73 $/hour


Annual Operating Costs

Assume each forklift operates 8 hours a day, 300 days a year:


Diesel Forklift

  • Annual Fuel Cost:


    5.92 $/hour×8 hours/day×300 days/year=14,208 $/year

Electric Forklift

  • Annual Electricity Cost:


    2.19 $/hour×8 hours/day×300 days/year=5,256 $/year


Annual Energy Cost Savings:14,208 $/year (Diesel)−5,256 $/year (Electric)=8,952 $/year


Carbon Tax Savings

Under Singapore’s carbon tax framework, businesses pay $25 per tonne of carbon dioxide (CO₂) emissions (as of 2024). Diesel forklifts emit approximately 2.68 kg of CO₂ per litre of diesel burned.

Carbon Emissions for Diesel Forklift

  • Emissions per Hour:3.2 litres/hour×2.68 kg CO₂/litre=8.58 kg CO₂/hour

  • Annual Emissions:8.58 kg CO₂/hour×8 hours/day×300 days/year=20,592 kg CO₂/year

  • Carbon Tax:20.592 tonnes/year×25 $/tonne=514.80 $/year

Electric Forklifts produce zero direct emissions, resulting in:

  • Carbon Tax Savings: $514.80 per year per forklift.

Maintenance Costs

Diesel Forklift

  • Servicing Costs: $200 per service

  • Servicing Frequency: Quarterly

  • Annual Maintenance Cost:


    200 $/service×4 services/year=800 $/year

Electric Forklift

  • Servicing Costs: Negligible

Maintenance Cost Savings:800 $/year (Diesel)−0 $/year (Electric)=800 $/yearr

Total Annual Cost Savings

Combining energy, maintenance, and carbon tax savings:8,952 $/year (Energy)+800 $/year (Maintenance)+514.80 $/year (Carbon Tax)=10,266.80 $/year

10-Year Savings

Over a 10-year lifespan, the potential savings are staggering:10,266.80 $/year×10 years=102,668.00 $

Environmental and Operational Benefits

  • Zero Emissions: Electric forklifts produce no direct emissions, contributing to cleaner air and a healthier work environment.

  • Energy Efficiency: Electric forklifts convert more energy into productive work, reducing waste.

  • Reduced Noise Pollution: Electric models operate much quieter than diesel counterparts, improving the workplace experience.

Conclusion

Switching to electric forklifts offers substantial cost savings, reduced environmental impact, and alignment with Singapore’s sustainability goals. With savings exceeding $10,000 per forklift per year, businesses can achieve significant financial and operational advantages.

Investing in electric forklifts is not just a move towards a greener future; it’s a smarter, more cost-effective choice for long-term success.

Contact us today to learn how electric forklifts can transform your operations!

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