Singapore’s traffic system is heading into a new phase as the Land Transport Authority (LTA) announced that new Electronic Road Pricing (ERP) rates will come into force on June 3, 2025. This policy update aims to tackle growing congestion by using pricing signals rather than expanding physical road space. Over the past year, vehicle numbers on key expressways such as the Central Expressway (CTE), Pan-Island Expressway (PIE), and Marina Coastal Expressway (MCE) have surged, leading to extended travel times during peak hours.
Instead of constructing new roads, which come at a heavy environmental and land-use cost, the government will raise ERP rates during the most congested periods and at the busiest gantries. The objective is clear: to discourage unnecessary trips, encourage time-shifting, and push commuters toward sustainable alternatives like public transport.
For regular commuters, delivery businesses, and ride-hailing drivers, these changes will have financial and operational implications. Understanding which gantries will be affected, what times are most expensive, and how to plan will be crucial to navigating the transition smoothly.
Why Are the ERP Rates Being Adjusted in June 2025?
Over the past several months, the LTA has closely monitored traffic patterns, particularly as Singapore’s post-pandemic recovery has seen more workers returning to the office. Daily rush-hour congestion has intensified, with key expressways and entry points into the Central Business District (CBD) frequently operating above optimal levels.
The government’s approach to this challenge emphasizes demand management: by making peak-hour driving more expensive, they aim to encourage drivers to shift to off-peak travel or switch to public transport. This strategy not only addresses congestion but also aligns with Singapore’s environmental goals to reduce vehicle emissions and promote more efficient urban mobility.
Moreover, road expansions are not seen as a viable long-term solution in land-scarce Singapore. Instead, the ERP system provides a flexible, data-driven tool that can be periodically adjusted to keep traffic under control.
Which Roads Will See New ERP Charges?
While not every ERP gantry will experience a price increase, several critical points will see adjustments. These include the CTE, PIE, AYE, MCE, and ECP arteries, where congestion is most severe during peak hours.
Below is a summary table of selected gantries and their new rates:
| Expressway / Location | Old Charge | New Charge (June 2025) | Peak Time Slot |
|---|---|---|---|
| CTE before Braddell Road | $2.00 | $2.50 | 8:00 AM – 9:00 AM |
| MCE towards Maxwell Road | $0.00 | $1.00 | 5:30 PM – 6:30 PM |
| PIE near Toa Payoh | $1.50 | $2.00 | 7:30 AM – 8:30 AM |
| AYE at Clementi | $1.00 | $1.50 | 6:00 PM – 7:00 PM |
| ECP at Fort Road | $1.00 | $1.50 | 7:30 AM – 8:30 AM |
These adjustments are carefully targeted based on traffic data to maximize impact without overburdening less congested routes.
Who Will Be Most Affected by the Changes?
The new ERP charges will impact multiple groups, but the effect will vary depending on driving habits and peak-hour dependence.
Here’s a list of key groups likely to feel the impact most:
- Daily office commuters who drive from residential areas into the CBD.
- Ride-hailing drivers whose income depends on operating during high-demand periods.
- Delivery services and logistics firms that make frequent peak-hour trips.
- Private vehicle owners who regularly use expressways during peak periods.
While occasional drivers may see only a small increase in their monthly expenses, those who cross multiple ERP gantries every day could face a noticeable rise in costs.
Financial Implications for Commuters and Businesses
Understanding the additional costs is crucial for budgeting and planning. A single $0.50 or $1.00 increase per gantry may seem minor, but over weeks and months, it adds up.
Below is a financial impact table estimating the monthly cost increases for different user types:
| User Type | Estimated Monthly Increase | Notes |
|---|---|---|
| Daily solo commuter | $25 – $40 | Based on two gantry crossings per workday |
| Small delivery business | $30 – $50 | Depending on daily delivery volume |
| Ride-hailing driver | $60 – $90 | High frequency during peak periods |
| Part-time commuter | $5 – $15 | Occasional peak-hour trips |
For businesses, these costs could influence delivery schedules or pricing models. For individuals, adjusting travel habits may offset some of the added expenses.
Promoting Sustainable and Alternative Transport
The ERP rate adjustment is just one part of Singapore’s broader transport strategy. The government is simultaneously investing in initiatives to make public transport and alternative mobility options more attractive.
Key government efforts underway include:
- Expansion of the MRT network, adding more stations and new lines.
- Improved bus frequency and coverage with more dedicated bus lanes.
- Development of cycling and pedestrian infrastructure to support last-mile connectivity.
- Introduction of park-and-ride hubs that combine car use with public transport.
These efforts aim to provide commuters with viable alternatives to driving, reducing both congestion and carbon emissions in the long run.
How Should Commuters Prepare?
To navigate the new ERP system effectively, commuters should start planning their adjustments now.
Here’s a preparation checklist for commuters and businesses:
- Check updated ERP rates and timings using the MyTransport.SG app or LTA’s official platforms.
- Plan trips outside of peak times to avoid higher charges where possible.
- Explore alternative routes that bypass the most expensive gantries.
- Consider public transport, carpooling, or park-and-ride to reduce individual ERP costs.
Businesses may also consider optimizing delivery schedules or consolidating shipments to reduce the number of peak-hour trips.
A Smart Shift Toward Efficient Urban Mobility
The June 2025 ERP adjustments represent Singapore’s ongoing commitment to managing urban congestion through smart pricing and sustainable transport solutions. By selectively raising charges during peak hours at the most congested points, the LTA aims to reshape commuter behavior, smoothen traffic flows, and encourage greener travel choices.
For individual commuters, now is the time to reflect on travel routines and explore cost-saving alternatives. For businesses, careful planning will be key to managing operational expenses effectively.
Ultimately, these changes align with Singapore’s broader goal of building a transport system that is efficient, environmentally responsible, and adaptable to future needs.