KNOWLEDGE CENTRE / SINGAPORE SAF LEVY
The Singapore SAF levy,
by destination and cabin.
From 1 January 2027, every origin-destination passenger flying out of Singapore pays a sustainable aviation fuel (SAF) levy, shown as its own line on the ticket. Here are the official rates, a quick calculator, and what the levy means for Malaysia.
LAST UPDATED 30 OCTOBER 202601 / LEVY CALCULATOR
What will my ticket carry?
Pick where your flight goes after Singapore and your cabin. For multi-stop flights, the levy is based on the immediate next destination after leaving Singapore.
S$1.00 per passenger, per departure from Singapore (CAAS rates)
02 / PASSENGER RATES
Official passenger rates
CAAS groups every destination into four distance bands. Premium cabins pay four times the economy rate, following IATA's passenger CO2 methodology.
| Band | Destinations | Economy and premium economy | Business and first |
|---|---|---|---|
| I | Southeast Asia | S$1.00 | S$4.00 |
| II | Northeast Asia, South Asia, Australia, Papua New Guinea | S$2.80 | S$11.20 |
| III | Africa, Central and West Asia, Europe, Middle East, Pacific Islands, New Zealand | S$6.40 | S$25.60 |
| IV | Americas | S$10.40 | S$41.60 |
The rates are set from the SAF volume needed for Singapore's 1% SAF target and the expected price premium of SAF over conventional jet fuel, plus certification, blending and delivery costs. They came in well below CAAS's earlier estimates (about S$3, S$6 and S$16 in economy to Bangkok, Tokyo and London), because SAF had become cheaper. Business and general aviation flights pay a per-aircraft levy by size and band, from S$40 to S$6,500.
Source: CAAS, 10 November 2025
03 / WHO PAYS
Who pays, and who doesn't
- Pays: origin-destination passengers departing Singapore, collected by the airline and shown as a distinct line item in the fare breakdown.
- Doesn't pay: passengers transiting through Changi.
- Exempt flights: certain flights, such as training flights and flights for charitable or humanitarian purposes.
- Cargo: deferred by a year, to services sold from 1 October 2027 for flights departing from 1 January 2028.
Sources: CAAS, 10 November 2025 · CAAS, 3 September 2026
04 / TIMELINE
Timeline
| 10 Nov 2025 | CAAS announces levy rates; originally for flights from 1 October 2026. |
| Aug 2026 | SAFCo completes procurement for its first voluntary SAF trial with nine companies, including Singapore Airlines and Scoot. |
| 3 Sep 2026 | CAAS confirms the passenger levy for flights from 1 January 2027 and defers cargo by a year. |
| 1 Oct 2026 | Tickets sold from this date include the levy. |
| End 2026 | SAFCo plans a request for proposal to buy SAF with levy funds. |
| 1 Jan 2027 | Levy applies to departing flights. |
| Mid-2027 | First levy-funded SAF expected to be delivered and uplifted. |
| 1 Jan 2028 | Cargo levy applies to departing flights (services sold from 1 October 2027). |
Sources: CAAS, 10 November 2025 · CAAS, 3 September 2026
05 / WHERE THE MONEY GOES
Where the money goes
Every levy goes into a statutory SAF Fund and is used only to buy SAF and SAF environmental attributes (EAs) and to cover associated administrative costs. The Singapore Sustainable Aviation Fuel Company (SAFCo), a non-profit wholly owned by CAAS, collects the levy, buys the fuel and allocates the EAs.
Scope 1 EAs go to airlines in proportion to the levies they collect, to support their CORSIA obligations; CAAS expects this to cover more than 80 passenger airlines. Scope 3 EAs are offered to companies that want to cut emissions from business travel and air freight, and the proceeds buy more SAF. Singapore aims to raise its SAF target from 1% to 3–5% by 2030, depending on global developments and SAF availability.
Sources: CAAS, 3 September 2026 · CAAS, 10 November 2025
06 / WHAT IT MEANS FOR MALAYSIA
What it means for Malaysia
- For travellers: Malaysians who start a journey at Changi, for example from Johor, pay the levy on that departure; S$1.00 in economy for a flight to another Southeast Asian country. Connecting through Changi on a through ticket does not attract it.
- For KLIA: Malaysia has not announced a passenger levy. The government has said it is drafting a 1% SAF blending requirement for international flights departing KLIA from January 2027. It remains a proposal, and in the latest public statements we found, implementation details were still being finalised.
- For producers: Singapore will buy SAF centrally through competitive tenders, with the first request for proposal planned by end 2026. That creates a nearby, transparent buyer that producers across the region, including in Malaysia, will watch closely.
Read more on Malaysia's own policy path, plants and feedstocks in the Knowledge Centre.
Sources: CAAS, 3 September 2026 · Bernama
07 / FAQ
Frequently asked questions
When does the Singapore SAF levy start?
It applies to passenger tickets sold from 1 October 2026 for flights departing Singapore from 1 January 2027. The cargo levy has been deferred to services sold from 1 October 2027 for flights departing from 1 January 2028.
How much is the Singapore SAF levy?
For economy and premium economy it is S$1.00 to Southeast Asia, S$2.80 to Northeast Asia, South Asia, Australia and Papua New Guinea, S$6.40 to Africa, Central and West Asia, Europe, the Middle East, the Pacific Islands and New Zealand, and S$10.40 to the Americas. Business and first class pay four times those amounts: S$4.00, S$11.20, S$25.60 and S$41.60.
Do transit passengers at Changi pay the SAF levy?
No. The levy applies only to origin-destination passengers departing Singapore, not to passengers transiting through Singapore.
Does a flight from KLIA to Singapore pay the Singapore SAF levy?
No. The levy is charged on flights departing Singapore. If you stay in Singapore and then fly out of Changi, that departure is covered; if you only change planes there, it is not.
Where does the money go?
Levies go into a statutory SAF Fund managed by CAAS and are used only to buy SAF and SAF environmental attributes and cover associated administrative costs. The Singapore Sustainable Aviation Fuel Company (SAFCo) runs procurement, with a request for proposal planned by end 2026 and the first SAF expected to be delivered in mid-2027.
Does Malaysia have a SAF levy?
Malaysia has not announced a passenger SAF levy. The government has said it is drafting a 1% SAF blending requirement for international flights departing KLIA from January 2027; it remains a proposal and implementation details were still being finalised in the latest public statements we found.
08 / SOURCES
Sources
- CAAS: New Sustainable Aviation Fuel Levy (10 November 2025)
- CAAS: SAF Levy to start for flights departing from 1 January 2027 (3 September 2026)
- Bernama: Malaysia to start SAF production by end-2025
Prepared by the SAF Malaysia editorial team, with NAICO as Founding Knowledge Partner. Spotted something out of date? Email [email protected].