Stay ahead of the curve with the latest 2026 updates on Singapore's ERP 2.0 transition, including mandatory OBU deadlines, roadside parking pilots, and new road markings.

Navigating the future: ERP 2.0 in 2026

Singapore's road-pricing landscape is going through its biggest change in nearly three decades. Through 2026, the shift from the legacy gantry system to the satellite-based ERP 2.0 is reaching its final stretch. According to LTA announcements, the full switchover is scheduled for 1 January 2027 — making this year critical for every driver to get compliant.

At AKA Car Rental, we have been tracking these changes closely. Our entire fleet is fitted with the latest OBU sets so that whether you take a monthly car rental or a P-Plate car rental, you don't face compliance issues or admin fees.

The final countdown: mandatory OBU installation

LTA reports that the large majority of Singapore's registered vehicles have already been fitted with the new On-Board Unit (OBU). If you are still on the old In-Vehicle Unit (IU), time is running out.

The deadline: All Singapore-registered vehicles must have an OBU installed by 31 December 2026.
Installation costs: The window for free installation for most motorists has closed. At authorised workshops, installation currently costs around S$70 for cars and S$35 for motorcycles.
The cutover: From 1 January 2027, the OBU becomes mandatory to travel on public roads.

Renting instead? All AKA vehicles come OBU-equipped, so you don't need to worry about any of this.

New features rolling out in 2026

ERP 2.0 brings more than a new way to pay tolls. Several features are being progressively activated through the year.

Roadside Electronic Parking (REP)

LTA is rolling out a pilot for Roadside Electronic Parking at hundreds of locations across the island. The OBU detects when you park in a designated roadside lot; you start the session with a tap and the system ends it and calculates charges when you drive away — no apps or coupons needed.

Virtual gantries and blue markings

Physical ERP gantries are being progressively removed. To help motorists spot charging zones, LTA has been trialling visual cues such as blue road markings and oval symbols on expressways like the PIE and CTE. These act as "virtual gantries" signalling a priced zone.

Decriminalisation of missed payments

From 2027, LTA will treat missed ERP payments as an administrative matter rather than a traffic offence. Responsibility for payment shifts from the driver to the vehicle owner, with a five-day grace period to settle charges via the OneMotoring portal or the OBU itself before a S$10 admin fee applies.

Crossing the border: JB and foreign vehicles

If you frequently take a Malaysia car rental across the Causeway, there are updates for 2026. Foreign-registered vehicles can install an OBU; those who choose not to face a flat-rate daily ERP fee (around S$10 for cars, S$3 for motorcycles) when driving in Singapore during ERP hours.

Managing your drive in 2026

The technology is changing, but the core principle — managing congestion — is not. LTA continues quarterly reviews of ERP rates, lowering them during school holidays when traffic drops and reverting afterwards.

If you are a PHV rental driver, the OBU's real-time traffic alerts and charging-zone information help you plan more efficient routes and keep toll costs down.

Frequently asked questions

Do I need to install an OBU if I rent a car? No — your rental car should already have one. All AKA vehicles are OBU-equipped, so renters don't need to arrange installation.

When does the old IU stop working? The full ERP 2.0 switchover is scheduled for 1 January 2027. You must have an OBU fitted by 31 December 2026.

Will ERP rates change under ERP 2.0? The charging mechanism changes (satellite-based, virtual gantries) but LTA still reviews rates quarterly based on traffic. The method of collection changes more than the price logic.

Do foreign-registered cars pay ERP in Singapore? Yes. Foreign-registered vehicles can install an OBU, or pay a flat daily ERP fee when driving in Singapore during ERP hours.

Conclusion

2026 is the transition year for Singapore's roads. With physical gantries coming down and satellite-based tracking taking over, staying informed is the best way to avoid unnecessary costs. Our team — Ryan, Brandon, Yong and Rachel — is here to help you navigate the change, and every car on our fleet is OBU-ready.