The way motorists are charged will not change when the satellite Electronic Road Pricing (ERP) system kicks in as the current model has been effective, said Transport Minister Ong Ye Kung.
In a Facebook post Mr Ong said it is much better to continue congestion pricing in a way that motorists are used to when Singapore switches to the new ERP system in 2023.
“Distance-based charging is a significant policy change which has many implications and should be studied carefully,” he said.
Motorists are now under a cordon-based congestion pricing framework where they are charged a one-off fee at gantries leading into more congested areas.
Calls for a distance-based system, where fees would vary depending on how far motorists drive, have drawn mixed reactions. Some think it is more equitable while others dread its implementation.
The new ERP system is capable of charging by distance, said Mr Ong, “but as a policy we are holding back”.
During the Budget earlier this year, Deputy Prime Minister Heng Swee Keat had said the technology for distance-based charging was “still several years away”.
In his post Mr Ong addressed questions and grouses from motorists about the new on-board unit (OBU) that will be installed in vehicles for free from the second half of next year.
The OBU comprises an antenna, a touchscreen display and a processing unit. It has drawn criticism for its perceived bulkiness.
Some asked why the three-piece unit could not be integrated into one, as with the OBUs issued to motorcyclists. Others asked if they could use their phones instead and do away with the standard-issue units altogether.