Amid escalations in the Middle East conflict since Feb 28, countries across Southeast Asia are increasingly concerned about the onset of an unprecedented energy crisis. Governments in the region have begun rolling out a series of countermeasures. Singapore has decided to postpone the introduction of its Sustainable Aviation Fuel (SAF) levy, which had originally been scheduled for October. The Civil Aviation Authority of Singapore (CAAS) announced that the levy on passengers and cargoes departing from Singapore will instead be implemented in January 2027.

The levy will apply to tickets sold after October for travel from January 2027 onward. For economy class passengers, the cost is expected to range from 1 to 10.40 Singapore dollars (approximately Yen 123 to 1,279) per person. The SAF levy is set to be the first of its kind globally. Meanwhile, other countries in the region are accelerating efforts to reduce dependence on petroleum through the use of biofuels. In Thailand, sales of B20 biodiesel, comprising 20% palm oil-based biofuel blended with conventional diesel, have begun for land transportation. The fuel is cheaper than regular diesel, and the government expects it will help curb petroleum consumption.

Vietnam has moved forward its plan to promote E10 biofuel, which blends 10% ethanol with gasoline, starting in April, with a focus on nationwide adoption. Indonesia, for its part, announced late last month that it will mandate the use of B50 biodiesel starting in July. B50 consists of 50% diesel and 50% palm oil-based biofuel and is used primarily for land transportation. Indonesia currently enforces a B40 mandate.