CAAS to Defer Sustainable Aviation Fuel (SAF) Levy

The suggestion to defer the SAF Levy implementation was raised in Parliament in early April to help mitigate cost pressures on airlines and passengers, as geopolitical tensions in the Middle East continue to affect fuel costs, airline operations, and overall travel demand.

Under the revised timeline, the SAF levy will now apply to tickets and services sold from 1 October 2026, for flights departing from 1 January 2027. This is a change from the previous announcement made in November 2025, which stated that the SAF Levy will apply to tickets and services sold from 1 April 2026, for flights departing from 1 October 2026.

The SAF Levy will be applicable to all Origin-Destination passengers, Origin-Destination cargo shipments, as well as general and business aviation flights departing Singapore.

Mr Han Kok Juan, Director-General of CAAS, note that the deferment is a “pragmatic pause in view of the current situation”.

“Singapore remains firmly committed to aviation decarbonisation. We will continue to work closely with our aviation industry partners and monitor global developments,” Mr Han added.