\n<\/p>\n
CAAS had estimated last year that the levy would be around S$3, S$6 and S$16 for a passenger in economy class travelling to Bangkok, Tokyo and London, respectively.<\/p>\n
The lower levy amounts announced on Monday reflect \u201cthe lower prevailing cost of sustainable aviation fuel compared to when the initial estimates were made\u201d, said CAAS.<\/p>\n
The levy amounts could be revised in future as Singapore\u2019s sustainability fuel targets shift, said director-general of CAAS Han Kok Juan at a media conference on Monday.<\/p>\n
Singapore aims for sustainable aviation fuel to account for 1 per cent of all jet fuel used at Changi and Seletar airports in 2026, rising to 3 to 5 per cent by 2030.<\/p>\n
\u201cWhen (the target) is 3 to 5 per cent, then the levy will have to be adjusted to achieve the 3 to 5 per cent,\u201d said Mr Han.<\/p>\n
\u201cBut insofar as we have set the target to 1 per cent (for 2026), the levy will be fixed regardless of the sale prices.\u201d<\/p>\n
He added that he expects the sustainable air fuel (SAF) levy to remain at the current level \u201cfor a few years\u201d, before a review is done \u201csome years down the road\u201d.<\/p>\n
When asked about the absolute volume of sustainable aviation fuel needed to hit the 1 per cent target, Mr Han said that the target will depend on the passenger volume for that period of time, and so an estimate cannot be provided now.<\/p>\n
“The introduction of the SAF levy marks a major step forward in Singapore’s effort to build a more sustainable and competitive air hub,” he said.<\/p>\n
“It provides the mechanism for all aviation users to do their part to contribute to sustainability at a cost which is manageable for the air hub.”<\/p>\n<\/div>\n