By The Big Buy desk · Last verified 28 September 2026
ERP 2.0 replaces Singapore’s gantry-based road pricing with a satellite-based system, and every Singapore-registered vehicle must have the new On-Board Unit (OBU) from 1 January 2027. Installation was free during LTA’s rollout, with a final three-month free window after its last reminder; late fees may now apply. Charges stay congestion-based for now: LTA has no immediate plans for distance-based pricing. The old gantries are being taken down from later in 2026, and blue road markings will show where ERP zones begin.
Quick facts
- The OBU is mandatory for Singapore-registered vehicles from 1 January 2027.
- Late installation may cost a fee.
- Charges stay congestion-based; no distance-based charging is planned yet.
- About 95 gantries will be removed progressively from later in 2026.
- Blue road markings show ERP zones.
- Only CEPAS cards work, such as NETS Motoring and EZ-Link Motoring cards.
What is the OBU?
A satellite-based unit that replaces the old in-vehicle unit. In cars it has three parts: an antenna, a processing unit with a card slot, and a touchscreen. Motorcycles get a single-piece unit on the handlebars. Besides ERP charges, it shows traffic alerts and warns you when entering School and Silver Zones, and it can pay for parking.
Will I pay more?
Not because of the switch. LTA has said there are no immediate plans for distance-based road pricing, which is still several years away, so charges will stay congestion-based. The new system does allow charging points without gantries, and charges spread across more locations in smaller amounts.
What happens to my data?
LTA says it uses only anonymised or aggregated data for traffic management and planning, and vehicle-specific data only for payment, charges and enforcement.
What do I need to do?
- If your OBU isn’t fitted yet, book an installation now.
- Switch to a CEPAS card; older CashCards aren’t supported.
- Watch for the blue road markings at ERP zones once the gantries go.
The WahLiao Verdict
If your OBU isn’t in yet, book it this month; three months before a legal deadline is not the time to find the workshops full. Nothing about ERP 2.0 changes what you pay today, but it gives LTA the tools to change it later.
Questions people ask
Is the OBU installation free?
It was during LTA’s rollout windows. Owners who missed them may have to pay a late fee.
Can I use my old CashCard?
No. The OBU takes CEPAS cards such as NETS Motoring, NETS FlashPay and EZ-Link Motoring.
Will there be distance-based charging?
The system can support it, but LTA says it’s still several years away.
What if I don’t have an OBU by 1 January 2027?
It’s mandatory from that date, so get it installed before then.
Sources: TheSmartLocal on the ERP 2.0 rollout and deadline and the OBU; Dollars and Sense, vehicle owner’s guide to ERP 2.0; MOT, oral reply on ERP 2.0; CarBuyer on the OBU’s parts and features.
Read next: Parking in Singapore · Road Tax in Singapore · Back to The Big Buy
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