Flight costs in the UK could soar following the introduction of the new green fuel tax

The British government has rolled out a new green fuel tax for airlines that will significantly push up the costs for jetsetters including Aussie travellers.

The British government has rolled out a new green fuel tax for airlines that will significantly push up the costs for jetsetters including Aussie travellers.

The introduction of a new net zero flight tax in the UK could add hundreds of dollars a year to the cost of flights for jetsetters including Australians travelling abroad.

The new charge – introduced on January 1 by the British government – requires airlines to fill their planes with at least two per cent of green fuel and move away from using traditional jet fuel.

Aviation experts have slammed the tax and said it will jack up the prices for travellers and the targets will be difficult to meet.

International aviation expert Neil Hansford said, “in the end the British government will get a warm feeling and say to the United Nations ‘aren’t we good fellas’.

“In the end the customer is screwed”.

Upstream Aviation director Tim Collins said the mandate will be difficult to meet because green fuel makes up just 0.02 per cent of all aviation fuel produced.

He said green fuel costs between “two to seven times” more than normal fuel.

“The lovely government in the UK, it’s one of their ridiculous green targets that’s not achievable,” he said.

Flight costs are expected to climb in the UK with the introduction of a new green fuel tax.

It’s expected much of the cost will be passed on to travellers and apply to domestic and international flights departing the UK.

This includes all carriers flying out of Heathrow including Qantas who have daily flights out of Heathrow airport.

The UK is one of the first countries in the world to legislate the fuel requirements to ensure sustainable fuel is used by airlines – it is made up from substances including used cooking oil and plant-based products.

The UK’s Department for Transport’s sustainable aviation fuel (SAF) mandate will see incremental increases year on year, reaching 10 per cent by 2030 and 22 per cent by 2040.

Reports in the UK claim that the government’s own impact statement expects the worst-case scenario is the new charge will add up to $604 (£302.40) annually to the cost of plane tickets for a family of four.

The aim of the new tax is to help facilitate the use of around 1.2 million tonnes of SAF by the UK airline industry annually by 2030.

Minister for Aviation Mike Kaine said the result of the new tax will allow for “a greener, more sustainable form of travel” and he said it will be helping “grow the economy and giving people the freedom to travel in a more sustainable way”.

However, a department spokeswoman said the impact on travellers’ hip pockets will be minimal.

“We want to give people the freedom to travel in a more sustainable way while protecting them from high ticket costs, and it is estimated that the move to greener fuels will add less than £4 to ticket prices,” the spokeswoman said.

“Our pledge to use more sustainable aviation fuel, part of our Plan for Change, will support thousands of jobs, bring down our transport emissions, and make the UK a clean energy superpower.”

In the Department of Transport’s final stage cost benefit analysis it said fuel suppliers, airports and airlines could face extra costs associated with the tax including administrative charges to implement the new measure.

The SAF mandate must be reviewed every five years and the first review is scheduled for January 1, 2030.

Originally published as Flight costs in the UK could soar following the introduction of the new green fuel tax