Adjusting Implementation Timeline of Sustainable Aviation Fuel Levy to Mitigate Cost Pressures on Airlines and Passengers

Mr Sharael Taha asked the Acting Minister for Transport in light of the Middle East conflict which has led to increased fuel costs and disruptions to key aviation routes between Asia, Middle East and Europe, whether the Government has considered delaying, phasing or adjusting the implementation of the Sustainable Aviation Fuel levy to mitigate near-term cost pressures on airlines and passengers, while balancing Singapore's longer-term decarbonisation objectives.

The Civil Aviation Authority of Singapore 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.