Apart from putting to rest the long-standing question of whether PLUS, the highway concessionaires, will be sold off by the government, it has also been announced that toll charges will decrease by 18% – but only on for private-registered vehicles and only on PLUS- operated highways.
Unfortunately, the reduction will only begin from February 1, 2020, so it won’t be in time to benefit those who will be travelling during the Chinese New Year holidays. However, there are likely to be discounts offered by highway concessionaires, the usual practice during major festive periods.
Bernama reports that, besides the toll reduction, the statement from the Prime Minister’s Office (PMO) also confirmed that there will be no change in toll rates on PLUS highways until 2058. This is in consideration for the concession period being extended by 20 years beyond 2038. PLUS is expected to carry out highway maintenance and operational activities without depending on the government, the statement added.
What does 18% mean to the motorist?
The 18% reduction lowers the toll rate on the North-South Expressway – the longest among PLUS highways – to 11.15 sen per km from the present 13.6 sen per km. Travelling from the Jalan Duta toll plaza in Kuala Lumpur to Alor Setar in Kedah would be RM45.50 or RM10 less than what it costs now. The savings from the same departure point in Kuala Lumpur to Skudai in Johor would be RM8.50.
The government will not be compensating PLUS for lowering the rate, and has cancelled the earlier concession agreement which provided for gradual increases in toll rates. The government will save RM42 billion as it does not have to pay compensation, and the money can be used for other development purposes. It also believes that PLUS will remain in a sound financial position to carry out its obligations for the next 58 years.
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