Singapore sets first ever sustainable aviation fuel levy, as Southeast Asia's fuel industry grows

Singapore is piloting the world’s first sustainable aviation fuel levy

SINGAPORE, Singapore -- Flying in and out of Singapore, home to Southeast Asia's busiest airport, will get slightly more expensive this year as the city state begins imposing a levy of between 75 cents to $32 per ticket to fund sustainable aviation fuel.

The tax will support Singapore's growing use of the cleaner burning fuel, which is often made from used cooking oil or agricultural waste. The global aviation industry is encouraging its use as it tries to slash rising emissions that contribute to climate change without altering current aircraft.

Southeast Asia is poised to become a hub for global production of sustainable aviation fuel, or SAF, as new facilities and policies launch across the region, while environmental backpedaling in the United States under President Donald Trump creates an opening in global fuel production.

Singapore has the region's largest SAF plant and is beginning construction of a next-generation facility this year, with set agreements to supply fuel to major carriers like JetBlue and Singapore Airlines. Thailand launched a brand-new SAF plant in Bangkok in 2025. Malaysia and Vietnam hit domestic production milestones last year and Indonesia, like Singapore, recently announced plans to expand current operations.

The industry is just getting started, said Tat Chuan Goh, with Aether Fuels, the Chicago-based fuel development company building Singapore's new plant. “But we do sense the momentum is clearly building up," he said.