Airfares may go up with green fuel

PUTRAJAYA: Malaysia has made no decision on whether to compel airlines to use sustainable aviation fuels (SAF) although they are encouraged to do so, says the Transport Minister.

Anthony Loke said the government was committed to reducing carbon emissions by 5% by 2030 and reaching net zero by 2050.

“We encourage airlines to adopt sustainable aviation fuels but that comes with a cost. Some airlines have written to the ministry asking to be allowed to impose certain charges for using sustainable fuel,” he told a press conference after the ministry’s monthly assembly here yesterday.

Loke was asked whether Malaysia would emulate a recent move by airlines in Singapore to impose a new green jet fuel levy on travellers from 2026 when flights departing the city-state will have to use sustainable aviation fuel.

On whether air travellers in Malaysia will have to pay additional costs with the switch to green fuel, he said it would be minimal.

“Our objective is not to burden the traveller but on the other hand, we have this obligation and every country must fulfil it for carbon emission reduction,” he said.

The minister said if a high levy was imposed, it would have adverse effects on the aviation industry and discourage people from flying.

“We understand the burden faced by airlines to reduce carbon emission but at the same time, we don’t want to burden travellers,” he added.

In principle, Loke said airlines were allowed to impose an additional fee to cover their carbon reduction costs.


“Some will adopt it to buy sustainable aviation fuels while others will use the money to pay for carbon credits. Airlines will also be allowed to adopt different strategies in terms of carbon emissions, such as optimising the operational efficiency of airlines, air traffic management and airports.

“We are taking all those steps to ensure we are moving towards reducing carbon emissions,” he said.

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