Singapore Green Jet Fuel Levy Postponed to 2027 Due to Middle East War

March 25, 2026 Priya Shah – Business Editor Business

Singapore has delayed the implementation of its planned levy on sustainable aviation fuel (SAF) for flights departing the city-state, citing disruptions caused by the ongoing conflict in the Middle East. The Civil Aviation Authority of Singapore (CAAS) announced on March 25 that the levy will now take effect for passengers departing Singapore on flights sold from October 1, 2026, with the charges applying to travel beginning January 1, 2027.

The postponement represents a shift from the original plan to apply the levy to passengers leaving Singapore from October 2024, based on tickets sold from April 1, 2024. The levy, designed to fund the adoption of greener jet fuel produced largely from waste materials like used cooking oil, will range from $1 to $41.60, depending on the class of travel and destination.

CAAS attributed the decision to the impact of the Middle East conflict on airlines and passengers. Several carriers, including Cathay Pacific and Thai Airways International, have already responded to rising fuel costs by increasing ticket prices or implementing fuel surcharges, as reported by The Straits Times.

Han Kok Juan, director-general of CAAS, affirmed Singapore’s continued commitment to decarbonizing the aviation sector, characterizing the delay as a “pragmatic pause” in light of current global circumstances. The initial goal was for SAF to constitute 1% of all jet fuel used at Changi and Seletar airports by 2026, increasing to 3% to 5% by 2030. CAAS has now adjusted the 1% target to 2027, while maintaining its intention to reach the 3% to 5% goal by 2030, contingent on global developments and the availability of SAF.

The levy will vary based on flight distance, categorized into four geographical bands: South-east Asia, North-east Asia, South Asia, Australia and Papua New Guinea; Africa, Central and West Asia, Europe, Middle East, Pacific Islands and New Zealand; and the Americas. Economy and premium economy passengers will pay between $1 and $10.40, while business and first-class passengers will be charged between $4 and $41.60. For multi-stop flights, the levy will be calculated based on the immediate destination after departing Singapore.

The postponement as well extends to cargo shipments and general and business aviation flights. Passengers in transit through Singapore, as well as those on training, charitable, or humanitarian flights, will be exempt from the levy.