Jet fuel green levy to kick in from Jan 1 for tickets bought from Oct 1; air cargo levy on hold for a year
For flights with multiple stops, the levy will be based on the immediate destination.
From October 1, 2027, passengers booking flights departing from Singapore will be required to pay a jet fuel green levy, provided they purchase their tickets from October 1 of that year. However, the air cargo levy, which applies to services sold from the same date for flights departing from Singapore, will not be implemented until January 1, 2028.
The Civil Aviation Authority of Singapore (CAAS) announced this decision on September 3, stating that the delay for air cargo is due to the diverse nature of the industry and the involvement of numerous businesses and agencies, such as airlines, freight forwarders, shippers, and commercial arrangements.
CAAS explained that this one-year deferment will provide more time to develop and implement a robust sustainable aviation fuel levy collection mechanism specifically for cargo shipments on departing flights. The levy itself is intended to go towards purchasing sustainable aviation fuel.
It was initially planned for passengers departing Singapore in October 2027, with tickets bought from April 1, 2027, to be subject to the levy. Nevertheless, this date was pushed back to January 1, 2027, in response to the global energy crisis caused by the war in the Middle East, which led to the closure of the Strait of Hormuz, a major route for a fifth of the world's oil and energy supply.
Passengers traveling in economy or premium economy class will face a levy of between $1 and $10.40, depending on their destination, while those in business or first class will pay between $4 and $41.60. The levy amount varies based on industry norms for calculating the carbon emissions of passengers in different cabin classes. Longer flights, which consume more fuel, result in passengers traveling to farther destinations paying a higher fee.
Destinations worldwide have been categorized into four geographical bands based on the distance traveled. The bands are Band 1 for Southeast Asia, Band 2 for North-east Asia, South Asia, Australia, and Papua New Guinea; Band 3 for Africa, Central and West Asia, Europe, the Middle East, Pacific Islands, and New Zealand; and Band 4 for the Americas. For flights with multiple stops, the levy is determined by the immediate destination after departing Singapore.
Written by urgent.news from Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
