ERP alerts, roadside e-parking payment in trial ahead of ERP 2 roll-out
Singapore will transition to a satellite-based Electronic Road Pricing (ERP 2) system on Jan 1, 2027, according to the Land Transport Authority (LTA). The update replaces the gantry-based system used since 1998 with satellite location tracking to determine vehicle positions for toll charging.
The LTA is currently conducting a user experience trial from June to November with 1,000 motorists. This group includes passenger car owners, motorcyclists, taxi drivers, and commercial vehicle operators.
How will the new ERP 2 alerts work for drivers?
Motorists will receive “ERP Ahead” notifications on their on-board unit (OBU) touchscreens. According to the LTA, these alerts will appear before the last possible exit, allowing drivers to take alternative routes to avoid paying the fee.

The distance of these alerts varies by road type. The LTA stated that notifications generally appear about 200 meters before the charging location on expressways and roughly 60 meters on arterial roads.
As physical gantries are progressively removed, information on prevailing rates and operating hours will shift to OBU touchscreens or compatible ERP 2 smartphone apps.
What other features are included in the satellite transition?
The system is expanding beyond road tolls to include roadside electronic parking payments. Starting in August, pilot users will test this feature at 644 designated carpark locations covering about 19,000 spaces managed by the Urban Redevelopment Authority.
The OBU will detect when a vehicle is parked, and the user starts the session via the touchscreen. The system automatically ends the session and deducts the charge when the vehicle exits the space. For those without OBU touchscreens, the Parking.SG app will remain in service.
Additionally, the LTA is testing automatic toll payments through the OBU at the Woodlands and Tuas checkpoints starting in mid-June. The authority is also evaluating five combinations of road signs and markings to serve as visual cues for charging locations.
Why is Singapore removing physical toll gantries?
Acting Transport Minister Jeffrey Siow told Parliament in February that the ERP 2 system eliminates the need for expensive physical gantries. This flexibility allows authorities to introduce new toll points more easily.

According to Siow, the LTA may use this capability to spread ERP charges in smaller amounts across several locations rather than collecting a single larger fee at one point.
The rollout is already well underway. The LTA reports that more than 96 per cent of the vehicle population, or approximately 960,000 vehicles, have already been fitted with an OBU ahead of a year-end deadline.
Frequently Asked Questions
When will the ERP 2 system officially launch?
The switch from the gantry-based system to ERP 2 is scheduled for Jan 1, 2027.
How can motorists avoid paying the new satellite tolls?
The OBU will display an “ERP Ahead” alert before the last possible exit, which the LTA says will give motorists time to take an alternative route.
Will the Parking.SG app be discontinued?
No. The LTA stated that the Parking.SG app will remain in service after the roadside electronic parking feature is fully rolled out.
Do you think satellite-based tolling is more efficient than physical gantries?