Singapore will begin centralised procurement for the SAF in late 2026

Singapore plans to hold its first centralized tender for sustainable aviation fuel (SAF) by the end of 2026, funded through a dedicated levy. Speakers at APPEC 2026 expect large-scale centralized procurement to help establish price signals that better reflect the Asian SAF market, which has historically relied heavily on pricing benchmarks from other regions.

Procurement will be managed by SAFCo, a company owned by the Civil Aviation Authority of Singapore (CAAS). It will aggregate policy-driven demand with voluntary purchases by airlines and corporate buyers. Pooling demand is expected to increase procurement scale and improve price transparency.

Instead of introducing a mandatory SAF blending requirement, Singapore will use a fixed levy. Procurement volumes will depend on market prices: higher SAF prices will result in smaller purchases, while lower prices will allow larger volumes to be secured. The mechanism is designed to limit the impact of SAF price volatility on airlines and passengers.

Singapore has set a 1% SAF target from 2027 and aims to increase it to 3–5% by 2030, depending on fuel availability and global market developments. The levy will apply to passenger tickets and general and business aviation services sold from October 1, 2026, for flights departing Singapore from January 1, 2027. Implementation for air cargo has been postponed by one year.

SAF remains significantly more expensive than conventional jet fuel. Platts assessed SAF HEFA-SPK FOB Straits at $2,540/t on September 9, with a premium of $1,247.5/t over jet fuel. Singapore expects larger centralized purchases and broader market participation to help establish more transparent regional price signals and support further development of the Asian SAF market.

Tags: Singapore, SAF, aviation fuel