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Chee Hong Tat on measures to stabilize COE prices
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Chee Hong Tat on measures to stabilize COE prices

The Land Transport Authority (LTA) will continue to closely monitor traffic conditions and, if necessary, adjust electronic road pricing (ERP) rates to control traffic congestion, said Transport Minister Chee Hong Tat. Responding to questions from MPs in Parliament on Tuesday, November 12, he also clarified that the injection of up to 20,000 Certificates of Eligibility (COE) is not linked to the implementation of distance-based pricing . Mr Chee said the Government had not made a decision on whether to implement distance-based pricing, although ERP 2.0 gives it the option to do so. “We will need to study this further, especially with ERP 2.0 data, because we need to think carefully about some of the trade-offs. If we were to proceed with distance-based pricing in the future, this would give LTA an additional tool to manage congestion and it would be possible to consider a further injection of additional COEs in tandem with the implementation of pricing based on distance,” he said. All things being equal, an increase in COE supply should help moderate prices, although the price impact will also depend on motorist demand, he added. Mr Chee also assured the House that LTA had assessed that it would be able to inject up to 20,000 additional COEs from February 2025 over the next few years without fear of causing traffic jams.