Ministers are considering scrapping new sustainable aviation fuel rules just days after their introduction, amid concerns they could increase flight prices by more than 20 per cent.
The green fuel mandate, which came into effect on New Year's Day, may be revoked to prevent significant cost increases for holidaymakers.
An impact assessment drawn up by ministers has revealed the extent of potential price rises, prompting the Government to acknowledge it might need to backtrack on the policy.
Under the new rules, airlines are required to use a minimum of two per cent sustainable aviation fuel in their planes.
Sir Jacob Rees-Mogg criticised the rules as 'more green madness'
GETTY IMAGES
This requirement is set to increase gradually, reaching 10 per cent and eventually 22 per cent by 2040.
The sustainable aviation fuel mandate involves using fuel derived from cooking oil and animal waste alongside traditional jet fuel, as part of the Government's drive towards net zero emissions.
The policy follows a recent 15 per cent rise in air passenger duty announced in the budget, which could add up to £400 to some family holidays.
According to the Government's impact assessment, the policy could add £302.40 to return plane tickets for a family of four by 2040 in a worst-case scenario.
The assessment indicates that up to 80 per cent of the airline levy costs could be passed on to consumers.
However, a more optimistic projection in the same document suggests the increase could be as low as £9.40 by 2040, depending on the availability of sustainable fuel.
The Times noted the Government could "immediately review the mandate" to prevent significant ticket price increases.
Lord Mackinlay, chairman of the Net Zero Scrutiny Group, told the Sunday Telegraph that British people should "holiday while you can", describing the policy as "fantasy land".
Scrapping the policy may see cheaper trips for British families
GETTY IMAGES
The source added the policy would protect "holidaymakers pockets" while enabling more sustainable travel.
A Department for Transport spokesperson said: "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."
They added that the pledge to use more sustainable aviation fuel would "support thousands of jobs, bring down our transport emissions, and make the UK a clean energy superpower".