The Civil Aviation Authority of Singapore (CAAS) has announced a one-year deferment of its green jet fuel levy for air cargo operations, pushing the implementation date to 1 October 2027 for flights departing Singapore from 1 January 2028.
In a statement issued on 3 September, CAAS attributed the adjustment to the complex structure of the air freight sector compared to passenger transit, citing the involvement of multiple stakeholders including airlines, freight forwarders, and shippers operating under varied commercial contracts.
CAAS stated: “Taking into account industry feedback, the one-year deferment will allow more time for CAAS to work with the industry to develop and implement a robust, sustainable aviation fuel levy collection mechanism for cargo shipments on departing flights.”
The cargo delay follows earlier timeline adjustments for passenger services. The green jet fuel levy for passengers—originally scheduled for October 2026—was previously postponed to 1 January 2027 for tickets purchased from 1 October 2026, following global energy market disruptions linked to conflict in the Middle East and maritime strain around the Strait of Hormuz.
Revenue raised through the levy will fund the purchase of Sustainable Aviation Fuel (SAF). For passenger flights, charges will be listed as a separate line item on fare breakdowns, structured across four geographic distance bands:
- Band 1 (South-east Asia): Standard economy charges starting from $1.
- Band 2 (North-east Asia, South Asia, Australia, Papua New Guinea): Scaled according to flight distance.
- Band 3 (Africa, Central/West Asia, Europe, Middle East, Pacific Islands, New Zealand): Mid-to-long-haul tier rates.
- Band 4 (The Americas): Maximum economy rates reaching up to $10.40, with premium, business, and first-class tariffs capped at $41.60 based on class emissions profiles.
For multi-leg journeys, the fee will be determined by the first direct stop after departure from Singapore.
Industry representatives expressed support for the extended implementation window for freight. Gabriel Lam, Chairman of SAAA@Singapore (formerly the Singapore Aircargo Agents Association), noted that avoiding a uniform collection model allows logistics providers to adapt systems and communicate changes to supply chain partners without disrupting operations.
