Starting in 2026, passengers departing from Changi and Seletar airports will pay slightly higher airfares. This is due to Singapore’s official implementation of the Green Aviation Fuel Levy, a special charge designed to support the use of Sustainable Aviation Fuel (SAF), an eco-friendly fuel regarded as the most realistic solution for reducing carbon emissions in the aviation industry.
The initiative was enacted under the Civil Aviation Authority of Singapore (CAAS) Amendment Bill, which was approved by Parliament on October 14, 2025. The new regulation allows the government to collect funds from flights departing Singapore and channel them into the purchase and management of SAF.
Small Fee, Big Impact
In essence, the levy represents a small surcharge on air tickets. Although the amount may seem minor, its contribution is expected to make a significant impact on the future of green aviation.
According to preliminary estimates from CAAS, economy-class passengers will pay about S$3 for short-haul flights, S$6 for medium-haul, and S$16 for long-haul routes, roughly the price of a cup of coffee at the airport.
While the levy will technically be paid by airlines, the government allows them to pass the cost on to passengers through ticket prices, similar to existing fuel surcharges or airport fees. Despite the slight increase, the policy is not expected to place a significant financial burden on travelers.
Singapore Sets 1% Green Fuel Target for 2026
As an initial step, Singapore aims for 1% of all jet fuel used at Changi and Seletar in 2026 to come from SAF. Although this figure may appear modest, it is seen as a realistic and measured starting point.
Currently, SAF is three to four times more expensive than conventional jet fuel, prompting the government to adopt a gradual approach to maintain fare stability and airline competitiveness.
Under a “fixed annual cost” system, the government will first determine the total funding required for SAF procurement based on usage targets and projected fuel prices.
The amount will be collected upfront through the levy, while the actual volume of SAF used will later be adjusted according to market conditions. This model provides cost certainty for both airlines and passengers.
Exceptions: Transit Passengers Remain Exempt
Not all flights will be subject to this levy. Transit and transfer passengers who only stop in Singapore before continuing to another destination will be exempt from the charge. This exemption aims to preserve Changi Airport’s position as one of the world’s most competitive international aviation hubs.
Additionally, training flights, humanitarian missions, and charity operations will not be subject to the levy. The government considers this exemption essential to ensure that social and humanitarian goals remain unhindered by additional costs.
Toward a Low-Emission Aviation Future
SAF is typically produced from waste materials such as used cooking oil and can be used in existing aircraft and fuel infrastructure without major modifications.
According to the International Air Transport Association (IATA), SAF could contribute up to 65% of the emission reductions needed for the global aviation industry to achieve net-zero emissions by 2050.
Although global adoption remains low, currently around 0.7% of total aviation fuel used worldwide, Singapore hopes that this initial step will help accelerate the industry’s transition toward greener skies.
The government is also working with the Economic Development Board (EDB) and energy companies to adapt local refineries for SAF production. In other words, every dollar collected through the levy represents a small investment in a cleaner, more sustainable future for aviation.
