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Dubai: Can dynamic pricing at Salik toll gates ease traffic jams?

Currently, the operator is charging a fixed a fee of Dh4 every time a vehicle passes any of the toll gates across the city

Early this month, Dubai's exclusive toll gate operator, Salik Company PJSC, categorically denied a widely circulated note on social media about the company’s “impending implementation of dynamic pricing for toll gates in the emirate”.

The viral post enumerated corresponding amounts – from free to Dh8 – based on off and peak hours that would presumably take effect when two new Salik gates would become operational next month. Salik said the information was entirely inaccurate.

But it was not the first time that the idea of introducing dynamic toll gate pricing was floated as a means to reduce congestion on Dubai’s busy roads.

Back in September 2022, Salik said in its IPO announcement: “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.”

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Currently, Salik is charging a fixed a fee of Dh4 every time a vehicle passes any of the toll gates across the city. The company earlier said: “There are other dynamic systems around the world that charge more during peak hours than off-peak hours… The dynamic pricing structure is related to adopting any changes that come in the future, including flexible tariffs or increasing the number of gates to manage traffic. The Executive Council of Dubai will take a final decision in this regard.”

Potential to take cars off the road

Managing the roads in Dubai is critical especially as the city’s population is projected to hit 4 million by 2026. So, the question is: Can dynamic toll gate pricing help decongest Dubai roads?

Dr Monica Menendez, associate dean of Engineering for Graduate Affairs at New York University Abu Dhabi (NYUAD), told Khaleej Times: “It is possible that – especially at the beginning – some drivers change their behaviour in order to avoid the higher toll prices.

They might choose to travel at different times, take alternative routes, use other modes of transportation, or even cancel their trips altogether. If this occurs, certain roads —particularly those with tolls — may experience reduced congestion during those periods.”

“Dynamic toll prices could potentially take cars off the road,” she noted, explaining: “If motorists change transportation modes or cancel their trips, and/or reduce traffic during peak hours, and/or if motorists change their travel times to avoid the higher toll prices.”

Dr Menendez further explained: “Dynamic toll gate pricing refers to toll rates that fluctuate throughout the day. This system is typically implemented to manage variations in demand and potentially influence travel behaviour. For instance, during peak traffic periods, toll prices may be higher to discourage motorists from travelling at those times. Conversely, when demand is low, toll prices decrease or may even be eliminated, encouraging travel during those periods instead.”

Who would benefit from dynamic pricing?

Major cities such as London, Stockholm, Singapore, and Abu Dhabi have successfully implemented the dynamic pricing system.

Dr Menendez, who is also director at the Research Centre for Interacting Urban Networks, said that aside from potentially decongesting the roads at varying times, implementing dynamic pricing can also help improve fund road infrastructure projects.

She noted: “First, revenue from the collected tolls can be reinvested into transportation infrastructure. This could include initiatives to improve roads or enhance public transport services.

“Second, as with any form of pricing, there is a possibility that dynamic tolls motivate some people to adjust their travel habits. If this occurs, traffic on certain roads may decrease, benefiting the remaining drivers who will then experience reduced congestion.”

Expand transportation options

Dr Menendez, however, noted: “Only drivers with access to other transportation modes or flexible schedules can change their travel times to avoid the higher toll prices.

“Hence, it is important to also deploy complementary strategies, such as promoting more flexible working hours and expanding the provision of alternative transportation options like buses and metro systems,” she underscored.

In a previous interview, Shweta Gandhi, associate consultant of urban planning and strategy at Kearney, told Khaleej Times that the effectiveness of toll gates in reducing traffic is not very high. “Tolls alone don’t solve traffic congestion. They might divert or redistribute it, but they don’t address the root cause,” she said, underscoring: Dynamic pricing seems feasible on paper but it has limitations, especially in a city like Dubai.”

She noted: “The increased toll fees might not be high enough to shift behaviour significantly as most people will simply pay more to travel at peak times, without solving the congestion problem. The alternative (travelling at odd hours) can disrupt people’s quality of life. In cities with robust public transport systems, dynamic pricing encourages people to leave their cars at home, but in Dubai, where those alternatives aren’t always feasible, it’s more of a financial burden than a traffic solution.”

ALSO READ:

• Dubai: Salik denies viral rumours of 'dynamic' toll fees of up to Dh8

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• Dubai: New Salik toll gate now up; to be operational in November