Air tickets bought from Thursday (1 October) for flights leaving Singapore from 1 January 2027 will carry a sustainable aviation fuel (SAF) levy of S$1 to S$41.60 per passenger.
The levy applies only when both conditions are met: the ticket is sold from 1 October 2026 and the flight departs Singapore from 1 January 2027. It covers passengers flying out of Singapore to another destination. Passengers transiting through Singapore do not pay it.
Airlines must show the levy as a separate line item in the fare breakdown, like other taxes and charges.
How much the levy costs
The amount depends on the cabin and on how far you fly. All destinations are grouped into four bands. Economy covers economy and premium economy, while business and first class pay four times the economy rate.
- Band I, Southeast Asia (such as Bangkok): S$1.00 in economy, S$4.00 in business or first
- Band II, Northeast Asia, South Asia, Australia and Papua New Guinea (such as Tokyo): S$2.80 in economy, S$11.20 in business or first
- Band III, Africa, Central and West Asia, Europe, the Middle East, the Pacific Islands and New Zealand (such as London): S$6.40 in economy, S$25.60 in business or first
- Band IV, the Americas (such as New York): S$10.40 in economy, S$41.60 in business or first
For flights with more than one stop, the band is set by the first destination after Singapore.
The Civil Aviation Authority of Singapore (CAAS) set the amounts in November 2025. They are lower than its earlier estimates of about S$3, S$6 and S$16 for economy travel to Bangkok, Tokyo and London, because SAF had become cheaper.
Why it was delayed
The levy was first meant to apply to tickets sold from 1 April 2026 for flights from 1 October 2026. In March, CAAS deferred it by six months because of the impact of the conflict in the Middle East on airlines and passengers.
Singapore has set a 1% SAF uplift target for 2026, with the goal of raising it to 3 to 5% by 2030, subject to global developments and wider availability of SAF.
Where the money goes
The levies go into a statutory SAF Fund, which can be used only to buy SAF or related environmental attributes and to cover administrative costs. The Singapore Sustainable Aviation Fuel Company (SAFCo), wholly owned by CAAS, collects the levy and buys the fuel.
SAFCo plans to call for proposals to supply SAF by the end of 2026, with the first batch of fuel expected to be delivered in mid-2027.
The levy on air cargo has been pushed back a further year, to cargo services sold from 1 October 2027 for flights departing from 1 January 2028.
