Singapore has revealed the details of its sustainable aviation fuel (SAF) levy on all flights departing the city, with fees set to be significantly lower than initially forecast.
At a briefing on 10 November, the Civil Aviation Authority of Singapore (CAAS) said the new levy will be imposed on all passengers with tickets bought from 1 April 2026 for all flights departing from 1 October.
Singapore is the first in the world to impose a blanket levy on all departing flights, with the funds going towards bulk procurement of SAF.
The levy will cover not just passenger services but also cargo, as well as business and general aviation flights. It will also increase according to the distance travelled and cabin class of travel, states CAAS.
An economy-class (or premium economy-class) passenger travelling within Southeast Asia will pay a levy of S$1 ($0.77), while economy-class passengers travelling to the USA will pay an additional S$10.40.
Business- and first-class passengers travelling within Southeast Asia will be charged S$4, with the levy rising to S$41.60 for travel to the USA.
CAAS director-general Han Kok Juan says the levy is lower than previously indicated because the price of SAF has “moderated”.
“We are also giving time for passengers to adjust to the SAF levy,” Han says.
In 2024, the CAAS gave examples on how much the levy could cost: an economy-class passenger flying to Bangkok could pay S$3, while those flying to London could pay S$16.
For cargo flights, the levy will be imposed on shippers – instead of aircraft operators – with charges varying according to geographical distance. For example, for shipments to Northeast or South Asia, the levy stands at S$0.04 per kg.
CAAS says the levy for business and general aviation flights will be charged on a per-aircraft basis, based on distance travelled and aircraft size. Certain flights – including training and humanitarian flights – will not be subjected to the levy.
The imposition of the levy comes as Singapore targets a 1% uplift of SAF from 2026, with the aim of increasing it to between 3% and 5% in 2030.
In late-October, CAAS announced the setting up of the Singapore Sustainable Aviation Fuel Company (SAFCo), a government-owned non-profit company that will oversee the acquisition and distribution of SAF, as well as implementation of the country’s SAF policies.
Han says Singapore’s procurement of SAF will be done with a fixed-cost envelopment model, where the levy – and the central funds – will be at a fixed rate regardless of the price of SAF.
Asked if the levy will be subject to regular review, Han points to the pricing model, noting: “[The] levy will be fixed in achieving this 1% [uplift] target, so we would… expect the levy to be fixed for [a] period of time. When [our uplift targets are] 3-5%… then the levy would have to be adjusted to achieve [the target].”