Singapore to impose SAF levy on departing air passengers from January 2027
Why It MattersThe levy formalises a dedicated funding mechanism for SAF procurement in Southeast Asia, signalling a broader shift toward passenger-funded decarbonisation schemes across the region's aviation market.
Singapore will introduce a Sustainable Aviation Fuel (SAF) levy on departing air passengers starting January 1, 2027, with the charge applying to tickets and air services sold from October 1, 2026. Airlines will be required to list the levy as a separate line item in fare breakdowns.
The levy varies by destination and cabin class. Economy and premium economy passengers will pay between S$1 and S$10.40 (roughly US$0.78–$8.15) each way, while business and first-class travelers pay four times those amounts. The one-way economy levy is S$1 to Southeast Asia, S$2.80 to Northeast and South Asia or Australia, S$6.40 to Europe, and S$10.40 to the Americas, with premium-cabin charges ranging from S$4 to S$41.60.
Revenue collected will go into a statutory SAF Fund used to purchase SAF and related environmental attributes and to cover administrative costs. The Singapore Sustainable Aviation Fuel Company Ltd. (SAFCo), a nonprofit wholly owned by the Civil Aviation Authority of Singapore, will collect the levy and oversee SAF procurement and allocation of environmental attributes.
CAAS said SAFCo completed its first voluntary procurement trial in August, involving nine companies including Singapore Airlines and Scoot. A formal SAF procurement tender is planned by the end of 2026, with the first SAF delivery and uplift expected in mid-2027. Singapore has set a 1% SAF uplift target for 2027, rising to between 3% and 5% by 2030 depending on global market conditions and SAF availability.
