Singapore to implement green fuel levy from October 2026

Singapore will proceed with its sustainable aviation fuel (SAF) levy, with collection commencing from 1 October 2026. The levy will apply to flights departing from Singapore on or after 1 January 2027.

Originally announced in 2024, the SAF levy aims to support the decarbonisation of airline operations. Its implementation was initially planned for 1 April 2026 but was postponed by six months due to elevated oil prices. The Civil Aviation Authority of Singapore (CAAS) has confirmed that while the levy for air cargo shipments will be deferred for an additional year, the passenger levy will proceed as scheduled.

Key details

• Levy collection starts: 1 October 2026

• Flights impacted: Departing from 1 January 2027

• Exemption: Tickets sold before 1 October 2026

• Exemption: Transit passengers

• Maximum levy: S$41.60

How the levy will be applied

The levy will be applied to tickets sold on or after 1 October 2026 for flights departing from Singapore on or after 1 January 2027. Tickets purchased before 1 October 2026 will not incur the levy, even if the flight departs on or after 1 January 2027.

Transit passengers will not be subject to the levy. For other travellers, the levy amount will vary based on the distance flown and the class of travel. Passengers can expect to pay up to S$41.60 more per ticket. You can check this post from milelion.com for a more detailed breakdown.

Source: caas.gov.sg

Opinion

Here we go, an unavoidable cost increase for many travellers. While the principle of funding sustainable aviation is sound, and Singapore is taking a leading role, the practical outcome for frequent flyers is simply higher airfares. It's a clear additional expense, regardless of how you booked your ticket or with what airline. It seems a little unfair, though, that transit passengers are exempt.

I know that any cost increase is usually frowned upon, and people already complain about high airfares since COVID and the still ongoing Iran war. However, we frequent flyers should have the financial capacity to bear that small additional responsibility, given the damage we cause in terms of CO2 release into the atmosphere. Paying S$40 more for a business or even first class flight that costs thousands should not be a significant issue or cause for complaint.

In that sense, hats off to Singapore. I believe more hubs should follow suit.