Singapore delays green jet fuel charge, bringing temporary relief for passengers
Singapore has postponed its planned green jet fuel levy, easing immediate cost pressures for air travellers and airlines amid rising fuel prices due to the Middle East conflict. The levy's implementation is shifted by several months, impacting tic...
By ET Online |
Agencies
Singapore has deferred the implementation of its planned green jet fuel levy, easing near-term cost pressure on air travellers as airlines face higher fuel prices linked to the Middle East conflict, the Civil Aviation Authority of Singapore (CAAS) said on Wednesday, as reported by AFP.
The levy, which was earlier set to apply on tickets sold from April 1 for flights departing October 1, will now be charged on tickets sold from October 1 for travel starting January 1. The delay shifts the cost impact on passengers and airlines by several months.
Singapore had planned to require departing flights to use Sustainable Aviation Fuel (SAF) and fund it through a levy on tickets. SAF is a biofuel made from plant and animal materials such as used cooking oil and fats, and produces lower carbon emissions than conventional jet fuel.
Rollout delayed as costs rise
“The Civil Aviation Authority of Singapore will defer the implementation of the SAF levy, in view of the impact of the ongoing conflict in the Middle East on airlines and passengers,” the regulator said.
CAAS director-general Han Kok Juan said the country continues to focus on emission reduction goals but will adjust timelines due to current conditions. “We are taking a pragmatic pause in view of the current situation,” he said.
The deferment also shifts Singapore’s target for a 1% SAF blend in aviation fuel to 2027. Authorities said the plan to raise the share to 3% to 5% by 2030 remains, depending on global supply and adoption.
Oil prices have increased after disruptions to tanker movement through the Strait of Hormuz during the US-Israeli conflict with Iran, adding to airline costs.
“We will continue to work closely with our aviation industry partners and monitor global developments,” Han said.
(With inputs from AFP)
The levy, which was earlier set to apply on tickets sold from April 1 for flights departing October 1, will now be charged on tickets sold from October 1 for travel starting January 1. The delay shifts the cost impact on passengers and airlines by several months.
Singapore had planned to require departing flights to use Sustainable Aviation Fuel (SAF) and fund it through a levy on tickets. SAF is a biofuel made from plant and animal materials such as used cooking oil and fats, and produces lower carbon emissions than conventional jet fuel.
Jewel Changi Airport is not just an airport, it’s a lifestyle destination with shopping, dining, nature, and entertainment all under one roof. It’s designed to make travel an experience, whether you’re a transit passenger or visiting Singapore itself.
Rollout delayed as costs rise
“The Civil Aviation Authority of Singapore will defer the implementation of the SAF levy, in view of the impact of the ongoing conflict in the Middle East on airlines and passengers,” the regulator said.
CAAS director-general Han Kok Juan said the country continues to focus on emission reduction goals but will adjust timelines due to current conditions. “We are taking a pragmatic pause in view of the current situation,” he said.
ADVERTISEMENT
The deferment also shifts Singapore’s target for a 1% SAF blend in aviation fuel to 2027. Authorities said the plan to raise the share to 3% to 5% by 2030 remains, depending on global supply and adoption.
Oil prices have increased after disruptions to tanker movement through the Strait of Hormuz during the US-Israeli conflict with Iran, adding to airline costs.
“We will continue to work closely with our aviation industry partners and monitor global developments,” Han said.
(With inputs from AFP)
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Related Articles
Managed office platform Smartworks adds 15,000 sq ft in SingaporeADVERTISEMENT
