Singapore Introduces Sustainable Aviation Fuel Levy for Departing Flights

Singapore has announced the introduction of a Sustainable Aviation Fuel (SAF) levy on all departing flights from the city-state, beginning in April 2026 for tickets sold, and applying to flights departing from 1 October 2026. The levy will range from S$1 (approximately US $0.77) for an economy-class passenger on a short-haul flight, up to S$41.60 (approximately US $31.95) for a premium-class passenger on a long-haul route.

The mechanism is designed to reflect both the distance travelled and the cabin class of the flight, acknowledging that longer flights and higher-class seats typically consume more fuel per passenger. Travellers transiting through the country will be exempt from the levy. The funds collected from this levy will be directed into a designated statutory fund to purchase SAF and related environmental attributes, and to cover the administrative costs of implementing the policy.

This measure forms part of a broader decarbonisation strategy in which the city-state targets sustainable aviation fuel to constitute 1% of all jet fuel used for departing flights in 2026, with aspirations to raise that share to 3% to 5% by 2030.

The levy structure is also fixed at the announced rates so long as the 1% target remains in place; any upward revision of the levy will depend on future increases in the SAF target.

In addition to passenger flights, the levy will apply to cargo shipments and business/general aviation flights, with charges calibrated by aircraft size or cargo weight and flight distance.

By introducing this charge, the government positions the aviation sector as a contributor to sustainability efforts, ensuring that the shift to greener fuel sources is supported by stable financing and transparent mechanisms, while balancing cost-impact for travellers.

A departure-based SAF levy is exactly how demand aggregation gets scaled, and it changes procurement economics for every airline flying through Changi. Our energy-transition and supply-chain-and-operations teams help airlines and fuel producers evaluate SAF procurement strategy against the evolving jurisdictional levies.