Singapore Introduces New Passenger Fuel Tax: Discover How It Will Impact Your 2024 Flight Costs

Singapore to tax passengers for fuel next year - this is how much it will add to your flight
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Singapore is on track to make history as the first nation to implement a green fuel tax on air travelers.

Starting October 1, 2026, the Civil Aviation Authority of Singapore will enforce a sustainable aviation fuel (SAF) charge on passengers departing from the country.

This charge will affect all tickets bought after April 1, with fees varying according to the distance of travel and the class of service. The charges will be divided into four geographical bands.

The first band encompasses Southeast Asia, while the second includes regions such as Northeast Asia, South Asia, Australia, and Papua New Guinea.

Group one includes Southeast Asia and group two includes Northeast Asia, South Asia, Australia and Papua New Guinea.

Africa, Central and West Asia Europe, the Middle East, Pacific Islands and New Zealand are in group three and group four includes the Americas.

Short routes will charge S$1 (£0.58) and passengers on long-haul economy flights will be charged S$10.40 (£6.08).

The highest rate is S$41.60 (£24.33) for first-class or business flights.

For example, economy class passengers will pay S$1 (58p) for flights to Bangkok, S$2.80 (£1.65) for journeys to Tokyo, S$6.40 (£3.75) for flights to London and S$10.40 (£6) to New York.

Singapore is set to become the first country to charge air passengers a green fuel tax. A Singapore Airlines plane is pictured 

HSBC Rain Vortex at the Jewel Changi Airport in Singapore is pictured

Prices will be shown by airlines as a ‘distinct line item’ on the air ticket sold.

The levy will not apply to passengers who are only travelling through Singapore.

The International Civil Aviation Organization (ICAO) has set a goal of net-zero carbon emissions for international aviation by 2050. Singapore said it is ‘committed to working towards that goal and will do so in a practical manner.’

Not everyone flying will pick up the green levy; it only applies to passengers departing from Singapore to a different destination. 

Travellers passing through Changi (or Seletar) are exempt – the tax is only applied to flights originating from Singapore. 

The levy is also only implemented on your very next destination. For example, if you were flying to the States with a connecting flight in Hong Kong, you’d only be charged for the flight to Hong Kong. 

It comes as Brits jetting off abroad could soon face an additional tax on their flight under the terms of the Labour government’s new post-Brexit deal with the EU.

Sir Keir Starmer agreed a ‘substantial package’ of agreements with Brussels in May this year that includes a commitment to reducing carbon emissions.

Pictured: Marina Bay area in Singapore, featuring the landmark Marina Bay Sands integrated resort and the Singapore Flyer observation wheel

This includes a promise to align with the European Union’s emissions trading scheme (ETS) that will reduce trading friction but is set to force the PM to adopt an additional tax on long-haul flights.

Estimates reported by The Times suggested the levy could add an average of £21 to the price of a long-haul plane ticket.

That will come on top of a rise in air passenger duty announced by Chancellor Rachel Reeves last year: £106 on economy class long haul flights and £253 in business and first class.

Since 2012, the EU’s ETS has required airlines to declare their carbon emissions for flights within the European Economic Area against a free allowance. 

But rules agreed in 2023 have gradually seen the free allowances replaced with an auction scheme that sees airlines pay for their emissions; global flights outside Europe could also fall under the scheme by 2027.

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