Review of Implementation Timeline for and Quantum of Sustainable Aviation Fuel Levy Amid Rising Fuel Prices

Mr Ng Shi Xuan asked the Acting Minister for Transport whether the Ministry will review the (a) implementation timeline for and (b) quantum of the sustainable aviation fuel levy, in light of rising conventional and sustainable aviation fuel prices.

The Civil Aviation Authority of Singapore (CAAS) has deferred the implementation of the sustainable aviation fuel levy, in view of the impact of the ongoing conflict in the Middle East on airlines and passengers. The levy will now apply to tickets and services sold from 1 October 2026, for flights departing from 1 January 2027.

There is no change to the levy quantum announced by the CAAS in November 2025 which was designed based on a fixed-cost envelope model, so that the cost to air transport users is kept stable.