As war in the Middle East disrupts global oil markets, Singapore has postponed its sustainable aviation fuel (SAF) levy rollout. The Civil Aviation Authority of Singapore (CAAS) announced 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. This delays the original schedule, which targeted tickets sold from April 1, 2026, for departures starting October 1, 2026.
CAAS attributed the change to the impact of the ongoing Middle East conflict on airlines and passengers, as fuel costs rise amid the war that began February 28. Director-General Han Kok Juan stated Singapore remains firmly committed to aviation decarbonization but is taking a pragmatic pause while monitoring developments with industry partners.
The levy funds a 1% SAF mandate for departing flights, with long-term goals of 3-5% by 2030 under the 2024 Sustainable Air Hub Blueprint. Expected charges range from S$3 for short-haul economy to S$41.60 (about $32 US) for long-haul premium, varying by route and class. Transit passengers are exempt. Funds will support SAF procurement via the Singapore SAF Company, established in 2025.
Foreign Minister Vivian Balakrishnan described disruptions around the Strait of Hormuz as an Asian crisis, underscoring regional energy dependence.