The sustainable aviation fuel (SAF) levy on flights departing from Singapore will be postponed because of the impact of the Middle East war, said the Civil Aviation Authority of Singapore (CAAS) as reported in The Straits Times.
It will now apply to passengers departing Singapore from 1 January, 2027, holding flight tickets sold from 1 October, 2026. It was originally meant to apply to passengers leaving Singapore from October, holding tickets sold from 1 April.
It was announced last November that Singapore would become the first country to introduce a SAF tax on outbound flights.
Passengers flying out of Singapore from 1 January, 2027, will pay a levy that will go towards the purchase of sustainable aviation fuel, made mostly from waste materials such as used cooking oil.
Several airlines such as Cathay Pacific and Thai Airways have already raised fuel surcharges or increased ticket prices.
The previous target set by the authorities was for sustainable aviation fuel to form 1 per cent of all jet fuel used at Changi and Seletar airports in 2026, and to reach 3 per cent to 5 per cent by 2030. CAAS said its 1 per cent SAF target will now apply from 2027 instead.
It added that its intention is still to raise the target to 3 per cent to 5 per cent by 2030, subject to global developments and the wider availability and adoption of green jet fuel.
Geographical bands
All destinations from Singapore will be grouped into four geographical bands:
- Band 1: Southeast Asia
- Band 2: Northeast Asia, South Asia, Australia and Papua New Guinea
- Band 3: Africa, Central and West Asia, Europe, the Middle East, the Pacific Islands and New Zealand
- Band 4: the Americas.
Travellers who fly farther will pay more because longer flights consume more fuel, CAAS said. Passengers in business or first class are set to pay up to four times more than those in economy class, based on industry norms for calculating the carbon emissions of passengers in different cabin classes.
Passengers travelling to Band 1 destinations will pay S$1 (US$0.77) if travelling in an economy cabin, which includes economy class and premium economy, and S$4 (US$3.08) for a premium cabin, which includes business class and first class.
Band 2 passengers will pay S$2.80 (US$2.16) and S$11.20 (US$8.62) for an economy cabin and a premium cabin, respectively.
Band 3 passengers will pay S$6.40 (US$4.93) and S$25.60 (US$19.71), and Band 4 passengers will pay S$10.40 (US$8.01) and S$41.60 (US$32.02) for an economy cabin and a premium cabin respectively.
The levy will not apply to passengers transiting through Singapore. For flights with multiple stops, the levy will be based on the immediate next destination after departing Singapore.
The levy will also apply to cargo shipments, and general and business aviation flights – such as private jets and chartered services – departing Singapore.
