From 2026, travellers flying out of Singapore will pay higher airfares because of a levy the Government will impose as part of a move to require flights departing from the city-state to use environmentally sustainable jet fuel.
The money collected from the passenger levy will go towards the bulk purchase of sustainable aviation fuel that airlines here will need to use, to kick-start its adoption.
The eco-friendly fuel, mostly made from waste materials such as used cooking oil, is three to five times more expensive than conventional fuel. But it has been earmarked as a critical way for the aviation sector to decarbonise.
While the specific details are yet to be finalised, preliminary estimates from the Civil Aviation Authority of Singapore (CAAS) suggest that economy-class passengers may incur an additional $3 levy for short-haul flights, $6 for medium-haul flights, and $16 for long-haul flights, such as those to Bangkok, Tokyo and London, respectively.
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