SINGAPORE’S proposed levy on flights to fund sustainable aviation fuel lags international targets, said observers. Even so, it still provides some much-needed clarity to the aviation industry, with only a minor impact on air ticket prices, they said.

The levy, which was announced on Feb 19 and is to be applied from 2026, will be paid by passengers on all flights leaving Singapore.

The revenue collected will be used to buy sustainable aviation fuel. The levy quantum will be set so as to cover 1 per cent of all jet fuel used by departing flights, to be increased to 3 to 5 per cent by 2030.