As the war in Iran continues to roil world oil markets, Singapore has delayed the rollout of its sustainable aviation fuel levy, pushing back a plan that would have added a new charge to tickets sold for departing flights later in 2026.
The Civil Aviation Authority of Singapore (CAAS) said on March 25, 2026, that the levy will now apply to tickets and services sold from October 1, 2026, for flights departing from January 1, 2027. Under the earlier plan, it was to apply to tickets sold from April 1, 2026, for flights departing from October 1, 2026.
CAAS said it made the change because of “the impact of the ongoing conflict in the Middle East on airlines and passengers.” Director-General Han Kok Juan said Singapore remains “firmly committed to aviation decarbonization” but is taking a “pragmatic pause” and will continue to monitor global developments with industry partners.
Singapore has continued to frame sustainable aviation fuel as the central near-term tool for cutting emissions from existing airline fleets, and its 2024 Sustainable Air Hub Blueprint set out a target for departing flights to use 1% SAF, with a longer-term ambition of 3% to 5% by 2030, depending on the health of the global economy and market conditions.
When Singapore first laid out the levy framework in 2024, officials said it would help fund the SAF requirement without leaving airlines to absorb the full cost themselves. Reuters reported at the time that the expected passenger charge would range from about S$3 on a short-haul economy fare to roughly S$16 on a long-haul premium-class ticket. More recent reporting has put the potential top end higher, at up to S$41.60 (about $32.29 US) depending on route and cabin class.
Bloomberg reported that Singapore delayed the levy as fuel costs climbed during the war that began on February 28. In a Reuters interview published March 23, Foreign Minister Vivian Balakrishnan said disruption around the Strait of Hormuz had become “an Asian crisis,” reflecting the region’s dependence on Middle East energy flows.
