SINGAPORE is open to reviewing the idea of a one-off increase in its vehicle population, spread over a few years and accompanied by higher vehicle-usage charges to prevent congestion, said Transport Minister Chee Hong Tat on Tuesday (Mar 5).
But the trade-offs “are not straightforward, and need to be studied carefully before a decision is made”, he added during the debate in Parliament on his ministry’s budget.
Member of Parliament Saktiandi Supaat had asked if distance-based charging could allow Singapore to increase the total vehicle population while still achieving its car-lite vision.
Chee said his ministry was “open to reviewing the idea” of a one-off increase with higher charges. These usage-based charges could include location and time-based fees – as with the existing Electronic Road Pricing (ERP) system – or distance-based charging, where road users pay depending on how far they travel.
“However, it is not feasible to (rely only) on usage-based charges to prevent traffic congestion, as these would have to be set at very high rates, which might not be acceptable to many car owners,” he said.
Singapore would still need other ownership controls and measures such as parking charges, he added.
He also noted that taxi, private-hire car and delivery drivers would face higher usage-based fees as they travel longer distances. “We will need to examine the impact on these groups, though usage-based charging is, in principle, a fair approach,” he said.
The Land Transport Authority began the roll-out of the new ERP 2.0 system’s On-Board units last November. These units are equipped with satellite-based technology that can support distance-based charging, though the statutory board said at the time that there were “no immediate plans” to transition away from the current system.
