Starting in 2026, airline passengers departing from Singapore will be subject to a new fuel tax aimed at supporting the use of sustainable aviation fuel. This tax is being implemented as part of Singapore’s strategy to promote the transition toward more environmentally friendly aviation.
What Is the Fuel Tax in Singapore?
The fuel tax to be introduced in Singapore is known as the Sustainable Aviation Fuel (SAF) Levy. This tax is not merely an additional fee, but a charge incorporated into the airfare to help fund the development and use of sustainable aviation fuel (SAF).
When Will the Fuel Tax Take Effect?
According to an announcement by Singapore’s civil aviation authority, the Civil Aviation Authority of Singapore (CAAS), this fuel tax will take effect on 1 October 2026 and will apply to all flights departing from Singapore. The tax will be applied to tickets sold starting from 1 April 2026.
How Much Is the Fuel Tax?
The amount of the fuel tax charged to passengers depends on the route and travel class:
Economy / Premium Economy Class
The levy ranges from S$1 to S$10.40, depending on the distance to the destination.
Business and First Class
The levy ranges from S$4 to S$41.60.
When converted into Indonesian rupiah, the highest tier of this tax can reach around IDR 500,000 per passenger for long-haul business or first-class tickets, depending on the exchange rate and the applicable tax level.
Who Is Required to Pay This Tax?
The fuel tax is imposed on passengers departing from Singapore. This policy does not apply to passengers who are merely transiting and do not exit the airport. In addition, tickets purchased before 1 April 2026 will not be subject to this tax, even if the departure date is after 1 October 2026.
Purpose of the Green Fuel Tax
The introduction of this tax is intended to support the use of Sustainable Aviation Fuel (SAF) in Singapore and to help the country achieve its target of 1% SAF usage of total jet fuel by 2026. This levy is then expected to contribute to higher SAF adoption targets in the following decade.
Impact on Airfare Prices
With the implementation of this fuel tax, the total cost of airline tickets may increase, as the levy will be listed as a separate charge within the ticket price. Aviation authorities have stated that although this tax will add to travel costs, the Singapore government aims to keep the increase measured and controlled.
