Electronic Road Pricing (ERP)
Managing congestion in high-traffic areas.
Last updated 5 December 2025
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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 an optimal speed range of 20-30 km/h on arterial roads and 45-65 km/h on expressways.
ERP 2.0 System
The current ERP system is reaching the end of its operational life. We will replace the current ERP system with the new ERP 2.0 system based on Global Navigation Satellite Systems (GNSS) technology. The ERP 2.0 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 services, such as advance alerts on charging locations, real-time traffic information and road safety advisories.
As part of the shift to the ERP 2.0 system, all Singapore-registered vehicles will need to replace their In-Vehicle Unit (IU) with a new On-Board Unit (OBU). New vehicles will be pre-fitted with the OBU. Owners of existing vehicles can arrange OBU installation with their preferred authorised workshops.
Learn more about road traffic management.
