Singapore to become first country to tax air passengers on aviation fuel

Singapore will become the first country to charge air passengers a green fuel tax as part of ongoing decarbonisation efforts.

From 1 October 2026, the Civil Aviation Authority of Singapore (CAAS) will introduce a sustainable aviation fuel (SAF) charge for travellers departing the country.

The SAF levy will apply to all tickets or services sold from 1 April 2026, including cargo shipments and business flights.

Charges will vary based on the distance travelled by an air passenger and the cabin of travel, and will be categorised by four geographical bands.

Group one includes Southeast Asia; group two comprises Northeast Asia, South Asia, Australia and Papua New Guinea; Africa, Central and West Asia, Europe, the Middle East, Pacific Islands and New Zealand are in group three and group four includes the Americas.

For example, economy class passengers will pay S$1 (58 pence) for flights to Bangkok, S$2.80 (£1.65) for journeys to Tokyo, S$6.40 (£3.75) for flights to London and S$10.40 (£6) to New York.

Prices will be shown by airlines as a “distinct line item” on the air ticket sold.

The levy will not apply to passengers who are only transiting through Singapore.

The International Civil Aviation Organization (ICAO) has set a goal of net-zero carbon emissions for international aviation by 2050. Singapore said it is “committed to working towards that goal and will do so in a practical manner.”

Mr Han Kok Juan, director general of 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”.

The news comes as a £500 levy for business travellers was proposed at Cop30, the climate summit, last week.

The governments of France, Spain and Kenya demanded “a special focus on premium flyers” with the proceeds of a levy going to “resilient investments and fair transitions”.

But the International Air Transport Association dismissed the idea from the Global Solidarity Levies Task Force as “crazy”.

Read more: Singapore airport secrets revealed, for those in transit or stranded