Electronic Road Pricing (ERP)
Managing congestion in high-traffic areas.
Last updated on 25 August 2026
Overview
The Electronic Road Pricing system, installed in 1998, is another lever in our strategy to manage road traffic. An earlier incarnation of this was the Area Licensing Scheme which levied a flat fee on vehicles entering the Central Business District (CBD).
ERP gantries are erected at roads prone to congestion. They use Radio Frequency Identification (RFID) technology to automatically collect a fee from any vehicle passing under them during their operating hours.
ERP rates are differentiated based on traffic conditions, and adjusted to keep traffic moving at respective optimal speed ranges on arterial roads and expressways.
ERP 2 System
The current ERP system is reaching the end of its operational life. We will replace the current ERP system with the new ERP 2 system based on Global Navigation Satellite Systems (GNSS) technology.
On 1 January 2027, LTA will complete the roll out to the ERP 2 system and decommission the ERP 1 system. From the same day onwards, the ERP 2 On-Board Unit (OBU) will be mandatory for all Singapore-registered vehicles. Owners of existing vehicles should arrange for OBU installation with their preferred authorised workshops as soon as possible.
The ERP 2 system is more responsive to managing road traffic conditions, less costly to build and maintain, and more space-efficient. We will be able to collect aggregated traffic data to improve traffic management and transport planning. Motorists will also have access to more services, such as advance alerts on charging locations, real-time traffic information and road safety advisories.
Learn more about road traffic management (opens in new tab).
