Singapore to impose sustainable aviation fuel levy for outbound flights from April 2026, impacting flights from October

The SAF levy amounts for economy tickets to Bangkok, Tokyo, and London will be S$1, S$2.80 and S$6.40 respectively.

In a step towards sustainability, Singapore will introduce a Sustainable Aviation Fuel (SAF) levy from 1 April 2026, with the charges applying to flights departing from 1 October 2026. The levy aims to accelerate the adoption of greener jet fuel and reduce aviation emissions, marking a significant move towards the nation’s decarbonisation goals.

The Civil Aviation Authority of Singapore (CAAS) shared in a press statement on 10 November that as longer flights consume more fuel, the SAF levy will be based on the distance travelled. All destinations from Singapore have been grouped into four geographical bands. For flights with multiple stops, the SAF levy applicable is based on the immediate next destination after departing Singapore.

Here is the breakdown of the SAF levy geographical bands: 

SAF levy for passengers

The SAF levy will apply on a per-passenger basis, with charges varying by geographic zones, travel distance, and cabin type:

• Economy Cabin which includes Economy Class and Premium Economy Class, or
• Premium Cabin which includes Business Class and First Class.

Premium Cabin passengers will pay significantly more under the SAF levy — about four times the Economy Cabin within the same travel band, which CAAS said reflects industry standards that account for the higher carbon footprint of premium seating. Airlines will collect the SAF levy and must display it as a as a distinct line item on the air ticket sold.

The SAF levy will only apply to 'Origin-destination passengers' — a passenger who departs from Singapore to another destination — and not those transiting through Singapore.

CAAS had initially estimated the SAF levy for economy passengers to be around S$3, S$6, and S$16 to Bangkok, Tokyo, and London, respectively. The actual charges, however, are much lower — S$1, S$2.80, and S$6.40 respectively. The difference reflects the current lower cost of sustainable aviation fuel compared to when the original estimates were made.

SAF levy for cargo shipments

For cargo shipments, the SAF levy will be charged per kilogramme and will vary by distance, grouped into four geographical bands.

The aircraft operator will collect the SAF levy and must show it clearly as a distinct line item in the air cargo contract.

SAF Levy for general and business aviation flights

For general and business aviation flights, the SAF levy will be charged per aircraft and will vary by distance, grouped into four geographical bands.

The rate also depends on the aircraft’s ICAO wingspan code (A–F), which serves as a proxy for size.

Certain flights — such as training flights or those for charitable and humanitarian purposes — will be exempt from the SAF levy.

All collected levies will go into a statutory SAF Fund managed by CAAS, dedicated solely to purchasing sustainable aviation fuel (SAF) and/or SAF environmental attributes (EAs), as well as covering related administrative costs.

To ensure transparency and value for money, the Singapore Sustainable Aviation Fuel Company (SAFCo) will oversee the procurement, allocation, and administration of SAF and EAs.

Commenting on the move, Han Kok Juan, Director-General, CAAS said:

"The introduction of the SAF levy marks a major step forward in Singapore’s effort to build a more sustainable and competitive air hub."

"It provides a mechanism for all aviation users to do their part to contribute to sustainability at a cost which is manageable for the air hub. We need to make a start. We have done so in a measured way, and we are giving industry, businesses, and the public time to adjust."

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