Private vehicles could face ‘congestion charge’ on Dhaka roads

The draft transport plan proposes a BDT 6.27-per-kilometre levy on roads served by metro rail, BRT or upgraded bus services

The charge forms part of the Updating the Revised Strategic Transport Plan (URSTP) for Dhaka, which says a reliable public transport alternative must be in place before the levy takes effect.

Dhaka is considering a congestion charge of BDT 6.27 per kilometre on private cars, motorcycles and trucks, though only on roads served by metro rail, bus rapid transit or upgraded bus services. The charge forms part of the Updating the Revised Strategic Transport Plan (URSTP) for Dhaka, a 20-year blueprint (2025–2045). It said a reliable public transport alternative must be in place before the levy takes effect.

The capital already has one qualifying corridor: the Uttara–Motijheel metro line. Two more metro projects are ongoing and three others are planned. In addition to these six metro lines, the URSTP recommends two further metro lines and five monorail lines. Once built, roads alongside them could face the charge.

A bus rapid transit corridor from the airport to Gazipur is already under construction and the congestion charges will become eligible for the corridor once operational. The government also intends to launch company-run premium bus services; routes with such services would also see private cars, motorcycles and trucks subject to the charge, according to the URSTP.

Traffic speeds in Dhaka have collapsed, underscoring the pressure. A study by the World Bank and BUET’s Accident Research Institute found the average speed fell from about 21 km/h in 2007 to just 4.8 km/h in 2022, a drop of roughly 16 km/h in 15 years.

A separate World Bank study estimates that congestion wastes around 3.2 million work hours daily. Routine gridlock at 73 key intersections deepens the paralysis, driving the daily economic loss close to BDT 980 billion, the study said.

Against this backdrop, the government is prioritising congestion reduction and deploying a series of technology-led measures. One is the planned congestion charge. The levy would be collected using Radio Frequency Identification (RFID) technology. Readers installed along designated roads would automatically deduct fees from private cars, motorcycles and trucks. The Bangladesh Road Transport Authority and the Dhaka Transport Coordination Authority would jointly oversee the system.

A separate recommendation calls for a modern traffic control centre, jointly run by the Dhaka Metropolitan Police traffic division and DTCA. The police would handle traffic control and accident management; DTCA would manage the congestion charge and bus operations.

Beyond easing gridlock, the charge is viewed as a financing tool. The URSTP draft says the transport plan to 2045 will require far more than the current budget can provide, and part of the shortfall could be covered by congestion charge revenue.

Transport expert and BUET professor, Dr Samsul Hoque, welcomed the plan. “To launch such a modern system, the entire traffic apparatus must be upgraded. A seamless digital database is essential: all vehicles must be registered and fitted with transponders for tracking and identification. If the government’s unified identification number is implemented in full, the process will become much easier. This is essentially a powerful and effective tool to control private cars,” he told Bonik Barta.

Dr Hoque urged variable pricing, with rates tied to time and congestion levels. “Why should anyone pay a toll at 4 am when the roads are empty? In Malaysia and other developed countries, the charge rises as traffic builds. People leave at dawn or during off-peak hours to dodge both the jam and the higher fee. That’s a core traffic management technique which distributes vehicle pressure across the day. It’s called a variable toll.”

He added that congestion charge revenue must be ploughed back into modernising public transport and upgrading road infrastructure.

The draft URSTP lists the charge among three short-term priority projects and proposes it be delivered through a public-private partnership.

The plan notes that average speeds on many key Dhaka roads fall below 5 km/h during peak hours. The charge is framed both as a tool to cut congestion and as a fresh funding stream for transport infrastructure.

Government secretary and DTCA executive director Mohammad Moshiur Rahman told Bonik Barta that authorities were already moving on monorail construction, bus terminal relocation, dedicated routes and company-run bus services to impose order on public transport. “The congestion charge is one part of that plan. Once all these steps are implemented, it will bring a major shift in controlling the capital’s traffic.”

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