Air passengers departing Singapore will pay a green fuel levy of as much as S$41.60 (US$31.95) from next year as the city state locks in a major step in its effort to cut the aviation industry’s emissions.
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Travellers flying in economy and premium economy, as well as those on short-haul routes, will be charged far less.
Those customers will pay an additional S$1 for trips to Southeast Asia and S$10.40 for flights to the Americas, the Civil Aviation Authority of Singapore said on Monday. Business and first class travellers will pay four times more, it said.
The sustainable aviation fuel levy will be applied on tickets sold from April 1 for flights departing Singapore from October 1. Passengers transiting through the city state would not need to pay the fee. Cargo flights will also incur a duty, which will be charged on a per kilogram basis.
Singapore is the first country in the world to tax passengers, and the levy is especially significant given its role as a global aviation hub. Its Changi Airport is poised for a record year, with this year’s passenger numbers on track to exceed the previous all-time high of 68.3 million hit in 2019.
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The funds collected from passengers will go to the centralised purchase of sustainable aviation fuel – typically made from waste oils or agricultural feedstock – as Singapore looks to achieve a SAF adoption rate of 3 per cent to 5 per cent by 2030.