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Transport Minister: ERP Distance-Based Pricing is “Fairer” to Motorists

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Speaking in parliament today, Transport Minister Khaw Boon Wan said that the soon-to-be-launched ERP distance-based pricing scheme will only apply to congested roads.

He added that the new system of distance-based pricing will be “fairer” to motorists.

Giving an example of what he meant, Mr Khaw said,

“Motorists who travel a full stretch on the congested road can be charged more than those who travel a part of it.”

Mr Khaw also said that it’s still too early to discuss whether there will be adjusting of the annual road tax and COE schemes, and the implications of a distance-based fee on taxi drivers and delivery businesses.

There’s been much outcry from the public that the new ERP fee structure unfairly penalises motorists who already pay road tax to use the roads, and COEs simply to own vehicles.

The new ERP system, which will run on satellite positioning technology, is expected to be completed in 2020.

Besides the possible implementation of die die must pay distance-based fees, the LTA hinted that motorists could be tracked using “real-time location-based traffic information” which it says is meant to facilitate route-planning.

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