Singapore introduces green fuel levy for air travellers from 2026

The Civil Aviation Authority of Singapore (CAAS) has announced a new “green fuel levy” to promote cleaner air travel. From 2026, passengers flying out of Singapore will pay a small additional charge on their tickets to support the use of Sustainable Aviation Fuel (SAF), a low-carbon alternative to conventional jet fuel.

SAF can cut up to 80 per cent of lifecycle emissions and is considered one of the most effective tools available today for decarbonising aviation. The levy aims to accelerate Singapore’s transition towards cleaner skies as part of its long-term sustainability goals.

For transparency, the additional charge will appear as a separate line item on air tickets. Rates will vary based on travel class and distance travelled.

Economy and Premium Economy

  • Short regional flights: S$1 (approximately ₹68)
  • Long-haul routes: S$10.40 (approximately ₹700)

Business and First Class

  • Short regional flights: S$4 (approximately ₹270)
  • Long-haul routes: S$41.60 (approximately ₹2,800)

Cargo Operators

  • Between S$0.01 and S$0.15 per kilogram (₹0.68–₹10/kg), depending on flight distance.

The levy will apply to all tickets issued from 1 April 2026 and will take effect for travel from October 2026. 

CAAS stated that the new fee will help scale up the use of SAF in Singapore, which currently accounts for around 1 per cent of aviation fuel consumption. The country aims to grow this share to between 3 and 5 per cent by 2030, depending on global supply, cost fluctuations, and emerging production capacity.

By adopting this levy, Singapore joins a growing number of aviation markets introducing policies to support SAF deployment, signalling a deeper commitment to greener aviation and a more sustainable future for global travel.

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