Singapore to Begin Charging Sustainable Aviation Fuel Levy Starting 2026

TEMPO.CO, Jakarta - Singapore is set to become the world’s first country to introduce a sustainable aviation fuel (SAF) levy, aimed at supporting the wider use of cleaner jet fuel.The levy will apply to passengers departing from Singapore starting October 1, 2026, for tickets sold from April 1, 2026, according to Travel + Leisure Asia.Citing the Civil Aviation Authority of Singapore (CAAS) via The Straits Times, passengers will be charged between 1 and 41.60 Singapore dollars, approximately Rp13,000 to Rp535,000, depending on cabin class and flight distance. For short-haul routes within Southeast Asia, economy passengers will pay S$1 (Rp13,000).For medium-haul destinations such as East Asia, South Asia, Australia, and Papua New Guinea, the levy ranges from S$2.80 (Rp36,000) for economy to S$11.20 (Rp144,000) for premium cabins.Flights to Africa, West Asia, Europe, the Middle East, and the Pacific will incur charges of S$2.80 (Rp36,000) for economy and S$25.60 (Rp329,000) for premium seats.The highest fees apply to flights to the Americas: S$10.40 (Rp134,000) for economy and S$41.60 (Rp535,000) for business and first class.CAAS noted that premium cabins and long-haul flights face higher levies due to greater fuel consumption. The levy will not apply to transit passengers, training flights, or humanitarian operations.Emission Reduction Targets and Funding MechanismRevenue from the SAF levy will be used to purchase sustainable aviation fuel through a newly established company, Singapore Sustainable Aviation Fuel Company (SAFCo), which will manage SAF procurement for Singapore’s airport hubs.The initiative supports Singapore’s goal of having SAF account for 1 percent of total jet fuel consumption at Changi and Seletar airports in 2026, rising to 3-5 percent by 2030. Updated price estimates for SAF have also allowed the government to set the levy lower than initially projected.Inclusion of Cargo and Private Jet FlightsThe SAF levy will also apply to cargo operations, calculated based on shipment weight and distance. For private jets and charter flights, the charges will be determined by aircraft wingspan and flight distance, following the same distance-band categories used for commercial flights.This policy forms part of Singapore’s long-term roadmap to achieve net-zero emissions in both domestic and international aviation by 2050.SAF, which is produced from used cooking oil, municipal waste, and captured carbon, is considered the most viable near-term solution for reducing aviation emissions without requiring major changes to existing aircraft technology.Annisa Nur Alimah contributed to the writing of this article.Editor’s Choice: Visa Launches Scan to Pay QR Payment System Across Asia PacificClick here to get the latest news updates from Tempo on Google News