If distance-based charging is implemented in the future, said Transport Minister Chee Hong Tat in a Parliamentary hearing on Tuesday ( Nov 12 ).
This is aside from the treatment of up to 20, 000 Offerings in the next few centuries across all car classes, starting following February.
Mr. Chee made it clear that distance-based charging will not be implemented with the approaching shot.  ,
In response to queries from MPs about the introduction of COEs, Mr. Chee responded,” We have never made a decision on whether to adopt distance-based charging, even though ERP 2.0 gives us the option to do so.”  ,
” We will need to study this further, including with the data from ERP 2.0, as there are trade-offs we need to think through carefully” . ,
He added that if distance-based charging were to go ahead, it would give the Land Transport Authority ( LTA ) an “additional tool to manage congestion”.  ,
He claimed that” there is scope for further consideration of adding more Submissions in addition to the implementation of distance-based charging.”  ,
After COVID-19, LTA had previously stated that travel patterns had changed, with a decrease in overall car mileage of about 6 % between 2019 and 2023, as well as a decline in CBD traffic demand.  ,
On top of that, with ERP 2.0, Mr Chee said that LTA you better manage prospects congestion, through “virtual gantries”, for example.  ,
” This allows for more flexible and responsive gridlock control”, he said.  ,
Mr. Chee also noted that category A, B, and C’s COE limit may increase quarterly before reaching the 2026-projected top offer.  ,
He said,” The additional COEs will give us more flexibility to fulfill this commitment and will help us increase COE supply over the coming months until we reach our 2026 peak.”  ,
Mr. Chee responded to a question from MP Melvin Yong ( PAP-Radin Mas ) regarding whether the planned injection would help stabilize COE prices by pointing out that the authorities have increased COE supply since last year with the” cut-and-fill” move and additional injections of up to$ 20,000.  ,
” All else being similar, an increase in COE provide should help to average rates”, said Mr Chee.  ,
” However, we are not able to predict how prices will move as that would also depend on the demand from motorists” . ,