Singapore has delayed the implementation of its sustainable aviation fuel (SAF) levy, citing the “impact” of the ongoing conflict in the Middle East on the airline sector and passengers.
The move – announced by the Civil Aviation Authority of Singapore (CAAS) on 25 March – comes as it was to impose the levy from 1 April, on all flights departing from 1 October this year.
The CAAS will now apply the levy on tickets and services sold from 1 October, for flights departing from 1 January 2027. The deferment will apply to commercial passenger and cargo flights departing Singapore, as well as general and business aviation flights.
There will be no change to the quantum of the levy when it is implemented. In November 2025, the CAAS disclosed the fees for departing passengers.
For example, an economy-class (or premium economy-class) passenger travelling within Southeast Asia will pay a levy of S$1 ($0.78), while economy-class passengers travelling to the USA will pay an additional S$10.40.
Business- and first-class passengers travelling within Southeast Asia will be charged S$4, with the levy rising to S$41.60 for travel to the USA.
With the deferment of the levy’s implementation, CAAS says it will also be shifting its target of a 1% uplift of SAF by a year.
“Our intent is still to raise the target to 3-5% by 2030, subject to global developments and the wider availability and adoption of SAF,” the CAAS adds.
A voluntary SAF procurement trial announced in February will also proceed as planned this year, the agency confirms.
The trial covers voluntary procurement of SAF, as an “important first step” to test operational, commercial and accounting processes needed to procure SAF at a national level. Partners include include Changi Airport Group, Singapore Airlines and its low-cost unit Scoot, Boston Consulting Group, as well as banks DBS and OCBC.
Director-general of CAAS Han Kok Juan stresses that the country “remains firmly committed to aviation decarbonisation”.
“We are taking a pragmatic pause in view of the current situation. We will continue to work closely with our aviation industry partners and monitor global developments,” Han adds.
