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This Asian country will become the world’s first to tax air passengers for fuel next year

The new green levy, which will come into effect from October, will apply to all passengers flying out in the country

Daniela Toporek
Written by
Daniela Toporek
Contributing writer
Singapore Airlines flight
Photograph: Shutterstock
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We all know that flying isn’t great for the planet. But what to do about it? There‘s always opting for overland travel, but not every traveller has time on their side. Short of setting annual limits for frequent flyers, adding an extra tax for air passengers is one way to help bolster decarbonisation efforts – and one Asian country is doing just that.

Starting October 2026 and applying to all tickets purchased after April 1, passengers departing from Singapore will face a sustainable aviation fuel (SAF) levy, the first of its kind in the world, as part of an ambitious goal to decarbonise the sky. Don't think of it as a tax. Think of it as a eco-friendly, forward-thinking step to help air travel become more sustainable across the world.

So, what is this tax for?

According to the Civil Aviation Authority of Singapore (CAAS), the levy is based on the volume of SAF needed to meet its one percent target for 2026, as well as SAF's projected price premium. While SAF is significantly more sustainable than conventional jet fuel (SAF is made from recycled oils and agricultural residue), it is also significantly more expensive to produce. 

How much will travellers have to pay?

Thankfully, the new charges won't break the average traveller's bank. Short routes will only charge S$1 (£0.58), while passengers on long-haul economy flights will be charged S$10.40 (£6.08). Even the highest rate, S$41.60 (£24.33) for first-class or business flights, is still significantly cheaper than paying for an extra check-in bag. 

The levy will apply to all tickets or services sold from April 1, 2026, including cargo shipments and business flights, for journeys taking off from October 1 onwardsThis might feel like a small price to pay, but it’s part of a much bigger picture, so our planet doesn't pay the price later. 

To keep payment fair, SAF charges will vary based on the distance travelled by air passengers and the cabin of travel chosen for each flight. The levy will also be categorised in four geographical bands. Group one consists of Southeast Asia. Group two includes Northeast and South Asia, Australia and Papua New Guinea. Group three consists of Africa, Central and West Asia, Europe, the Middle East, Pacific Islands and New Zealand, and group four is the Americas. 

Are there any exceptions?

Not everyone flying will pick up the green tab. The levy only applies to passengers departing from Singapore to a different destination. Transit travellers passing through Changi (or Seletar) are exempt – the tax is only applied to flights originating from Singapore. Training flights, humanitarian missions and specific chartered services will also avoid the fee. The levy is also only implemented on your very next destination. For example, if you were flying to the States with a connecting flight in Hong Kong, you'd only be charged for the flight to Hong Kong. 

Singapore’s green fuel levy isn’t just another surcharge, it’s a bold statement to the world of aviation: that it's serious about playing a pivotal, pioneering role in sustainable air travel. But will other destinations follow suit, or will Singapore remain ahead head of the game? 

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