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Singapore to stop registering new diesel cars and taxis from Jan 1, 2025

Singapore to stop registering new diesel cars and taxis from Jan 1, 2025

SINGAPORE – New diesel cars and taxis will no longer be registered in Singapore from Jan 1, 2025, as part of the government’s efforts to ensure all vehicles on the streets are powered by cleaner energy by 2040.

The decision to phase out more polluting vehicles was announced in Parliament three years ago in March 2021 during a debate on the Government’s environmental sustainability plans.

The Land Transport Authority (LTA) said on July 10 that the rate of new diesel vehicle and taxi registrations has remained below 1% overall since then, due to the availability of cleaner alternatives.

The ban on new diesel cars and taxis comes before a requirement that all new cars and taxis registered here from 2030 must be cleaner energy models.

Owners of diesel vehicles registered before January 1, 2025, will be able to renew their certificate of entitlement (COE) after the 2025 deadline, but will be subject to higher road taxes to discourage renewal, the LTA said.

This is because of the current policy of imposing a road tax surcharge of 10 per cent to 50 per cent on vehicles older than 10 years, depending on the age of the vehicle.

However, the LTA also said the restrictions on new diesel vehicle registrations would not apply to the import and registration of vehicles under the Classic Vehicle and Classic Vehicle schemes.

According to the regulation, classic vehicles must be at least 35 years old from the date of first registration and meet certain registration and technical conditions.

Meanwhile, classic vehicles are well-preserved, heritage-rich cars, motorcycles or scooters produced before January 1940.

As of May 2024, there were 19,972 diesel-powered cars and taxis on Singapore roads. These make up a small minority of the 164,759 diesel vehicles there, the majority of which are goods vehicles and buses.

As of May, around 17% of all vehicles in Singapore were diesel-powered. Among passenger cars, pure diesel models accounted for around 2.7% of the population of 650,001.

While taxis used to be largely diesel-powered, the vast majority have since switched to petrol-electric hybrids or fully electric models. As of May, about 16.8% of the 13,330 taxis here were still diesel-powered.

At the same time, studies such as the Early Transfer Scheme (ETS) and the Commercial Vehicle Emissions Scheme (CVES) are being carried out to encourage commercial vehicle owners to move away from diesel fuel and switch to cleaner fuels.

Under the ETS, the owner of an old commercial vehicle will be able to switch to a new vehicle with cleaner emissions by paying a discounted percentage of the COE price, rather than bidding on a new vehicle.

On the other hand, under CVES, light commercial vehicle owners are given cash incentives if they choose cleaner, mostly electric models.

As of May, 88.6% of the 143,565 freight vehicles registered here were diesel-powered, up from 95.8% at the end of 2020. For buses, 97.4% of the 18,007 registered here were diesel-powered.