The sustainable aviation fuel levy will now apply to tickets sold from 1 October for flights departing from 1 January. Photo Credit: iStock/uyNguyenSG
Singapore has postponed the introduction of its planned green jet fuel levy. The Civil Aviation Authority of Singapore (CAAS) said the decision reflects the impact of the conflict on airlines and passengers, as fuel prices rise and operating conditions become more volatile.
Under the revised timeline, the sustainable aviation fuel (SAF) levy will apply to tickets sold from 1 October 2026, for flights departing Singapore from 1 January 2027. This delays the original plan, which would have seen the levy kick in earlier in 2026.
The levy, ranging from S$1 (US$0.78) to S$41.60 per passenger depending on route and class, is intended to fund the purchase of sustainable aviation fuel, which is significantly more expensive than conventional jet fuel.
CAAS described the move as a temporary adjustment, noting that Singapore remains committed to its longer-term decarbonisation targets.
The city had aimed for SAF to make up 1% of total jet fuel use in 2026; this will now be pushed back to 2027, while the longer-term goal of 3% to 5% by 2030 remains under review.
CAAS said it will continue to monitor global developments and work with industry partners, signalling that the rollout of green aviation measures will be paced against broader market conditions.
Related: Will Singapore’s SAF levy mean higher airfares?