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Singapore to charge levy for eco-friendly aviation fuel

19 Feb 2024, 6:21 AM
Singapore to charge levy for eco-friendly aviation fuel

SINGAPORE, Feb 19 — Passengers departing Singapore will pay higher flight fares as the country will introduce a levy to expand the use of sustainable aviation fuel from 2026, according to the Singapore Sustainable Air Hub Blueprint.

Xinhua reported Transport Minister Chee Hong Tat as saying that Singapore aims to achieve net zero by 2050, and sustainable aviation fuel (SAF) will contribute two-thirds of the carbon emission reduction needed.

Speaking at the blueprint's launch at the Changi Aviation Summit 2024 today, he said Singapore will require departing flights to use SAF from 2026 and lift the SAF-using target from one per cent in 2026 to between three per cent and five per cent by 2030.

The current SAF price made from non-petroleum feedstocks, including food waste, is about three to five times more than conventional jet fuel.

"Thus, Singapore will introduce a fixed levy based on the SAF target and projected SAF price to provide cost certainty to airlines and travellers," Chee said.

The ticket price for an economy class passenger on a direct flight from Singapore to Bangkok will increase by SG$3 (RM10.67) after charging the SAF levy, while passengers in premium classes will pay higher levies.

More details of the SAF levy will be announced in 2025.

— Bernama

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