Dubai: Dh4 standard Salik toll gate rate has 'lost momentum'; official suggests 'dynamic pricing'

Dubai's toll gate system needs a dynamic pricing system as studies show that the Dh4 rate lost momentum and impact on traffic, a senior official said.

“For dynamic pricing, there was a statement from RTA earlier this year talking about the possibility of implementing dynamic pricing in the future. It didn't set the time or date for the start of implementation. But the studies show that Dh4 lost a lot of its momentum and impact on traffic. There is a need to apply dynamic pricing, which varies depending on the time of the day. That also suggests there will be an exemption of tariff during certain times of the day,” said Ibrahim Alhaddad, CEO of Salik.

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While speaking during the Investor Conference Call on Wednesday, he added that the details and financial impact will be reviewed by Salik before it goes to the Dubai Executive Council for approval.

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As reported by Khaleej Times earlier also, Salik revealed in its IPO announcement that it could introduce “dynamic pricing” to reduce congestion on the emirate's roads.

“The Roads and Transport Authority (RTA) could implement dynamic pricing through optimising the toll rates depending on the time of the day, for example, by charging a higher toll fee for specific lanes or during peak hours," Salik said in its IPO announcement.

Under the “dynamic pricing” system, motorists are charged more during peak hours as compared to off-peak hours. Many major cities around the world have dynamic toll pricing systems in place.

In reply to a question about the impact of unprecedented rain in April 2024, a spokesperson from Salik said its infrastructure was not affected and gates were operating normally.

“We saw an increase in demand following the storm, which somehow compensated the impact that we had during those 3-4 days of the storm. The effect usually came during long Eid break as most of the people travelled abroad,” said the spokesperson during the conference call with investors.

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Waheed Abbas

waheedabbas@khaleejtimes.com

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.