Singapore will add a green aviation fuel tax on all departing flights from 2026, with the goal of increasing the use of sustainable fuel.
The Sustainable Aviation Fuel (SAF) Levy will apply to flights departing after 1 October 2026, for tickets sold after 1 April 2026. The levy for passengers to Australia is estimated at SG$2.80 (A$3.30) for economy travellers, and $11.20 (A$13.18) for premium cabins.
“The introduction of the SAF Levy marks a major step forward in Singapore’s effort to build a more sustainable and competitive air hub,” said Civil Aviation Authority of Singapore (CAAS) director-general Han Kok Juan.
“It provides a mechanism for all aviation users to do their part to contribute to sustainability at a cost which is manageable for the air hub. We need to make a start. We have done so in a measured way, and we are giving industry, businesses and the public time to adjust.”
The SAF Levy will depend on the flyers’ destination and travel class. Fees will be just $1.00 for economy passengers travelling elsewhere in Southeast Asia, the CAAS said, and at $41.60 for premium-class travel to the Americas.
Singapore will also introduce a SAF Levy for cargo flights. The minimum will be set at $0.01 per kilogram for flights to Southeast Asia, with the maximum at $0.15 per kilogram for flights to the Americas.
General and business aviation flights will be charged a levy depending on aircraft size as well as destination. This will range from $40 for planes with a wingspan under 15 metres travelling in Southeast Asia, to $6,500 for planes with a 65-80 metre wingspan bound for the Americas.
The levy will not apply to training or humanitarian-related flights, or to flyers transiting in Singapore. Fees for flights with multiple stops will only be charged based on their immediate next destination.
Singapore plans for 1% of its aviation fuel to be sustainable in 2026, rising to 3-5% by 2030. Funds from the levy will be used to purchase green fuel and for related expenses, CAAS said.
CAAS said in October that it had formed a Singapore Sustainable Aviation Fuel Company to support its green aviation fuel policies.
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