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Singapore launches $32 green fuel levy on airfares

Singapore will become the first country to introduce a “green fuel levy” on departing flights, aimed at promoting the use of sustainable aviation fuel (SAF).

The levy will apply from 1 October 2026 for tickets sold from 1 April 2026. Passengers could pay up to S$41.60 (about $32 or ₹3,690), with higher charges for long-haul and premium-class flights. Short-haul economy passengers will see a minimal increase of around S$1.

Transit passengers will not be charged, while cargo flights will face a separate per-kilogram levy.

The funds collected will be used to buy SAF, made from waste oils and crops, with a goal of reaching 3–5% of Singapore’s aviation fuel mix by 2030. Currently, SAF accounts for just 0.3% of global jet fuel.

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