Singapore has postponed its green jet fuel levy, which was set to apply to flights departing from the city-state starting October 2026. The decision follows concerns about the impact of the ongoing Middle East conflict on airlines and passengers, according to the Civil Aviation Authority of Singapore (CAAS). The levy will now take effect for passengers flying out of Singapore beginning January 1, 2027, for tickets sold from October 1, 2026.
Key Details of the Levy
The levies range from $1 to $41.60 per passenger, depending on their class and destination. Economy or premium economy passengers will pay between $1 and $10.40, while business and first-class travelers face higher fees, up to $41.60 for flights to New York. These amounts reflect industry standards for calculating carbon emissions based on flight distance and cabin class.
Airlines such as Cathay Pacific and Thai Airways have already introduced fuel surcharges or price increases due to rising costs linked to the Middle East conflict. CAAS cited these challenges as a key factor in delaying the levy, which was originally scheduled to apply to flights departing Singapore from October 2026.
CAAS Director’s Statement
CAAS director-general Han Kok Juan emphasized that Singapore remains committed to reducing aviation emissions. “We are taking a pragmatic pause in view of the current situation,” he said, adding that the authority will continue its efforts to decarbonize the aviation sector. The original target for sustainable aviation fuel (SAF) was 1% of all jet fuel used at Changi and Seletar airports by 2026, with a goal of 3% to 5% by 2030.
With the levy postponed, the 1% SAF target will now apply from 2027. CAAS stated that its long-term objective of reaching 3% to 5% by 2030 remains unchanged, though it acknowledged that global developments and the availability of green jet fuel may influence this timeline.
Geographical Bands and Fee Structure
Destinations are grouped into four geographical bands, with fees increasing based on distance. For example:
– Band 1 (Southeast Asia): $1 for a flight to Bangkok.
– Band 2 (North-East Asia, South Asia, Australia, Papua New Guinea): $2.80 to Tokyo.
– Band 3 (Africa, Central/West Asia, Europe, Middle East, Pacific Islands, New Zealand): $6.40 to London.
– Band 4 (Americas): $10.40 to New York.
Business-class travelers pay a minimum of $4 for flights to Bangkok and up to $41.60 for flights to New York. For multi-stop flights, the levy is based on the first destination after departing Singapore.
Exclusions and Exceptions
The levy does not apply to passengers transiting through Singapore, training flights, or flights for charitable or humanitarian purposes. It also covers cargo shipments and general aviation flights, including private jets and chartered services, starting January 1, 2027.
CAAS has not yet provided a detailed update on how the postponement might affect broader decarbonization targets, but it reiterated its focus on sustainable aviation practices. The agency remains open to adjustments based on global trends in green fuel adoption and industry needs.