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The speculation on the PLUS toll hike continues – The Star reports that the Works Ministry has come out to quash rumours of the impending increase, saying that that there will not be an automatic hike. Earlier news had indicated that the highway concessionaire had been allowed to raise prices by as much as 5% next year under revised agreement terms.

While confirming that PLUS had renegotiated its concession agreement that provides for a 5% toll increase every three years, Works Minister Datuk Seri Fadillah Yusof said that the government had yet to make a decision on the new toll rates.

“We wish to point out that there would not be an automatic hike for Plus and the government has yet to make a decision on this,” he said via a statement. He added that a committee will be formed by the end of the year to discuss the new toll rates.

toll booth

Fadillah explained that the agreements with PLUS were renegotiated based on a previous concession agreement, which had allowed a 10% hike in toll prices every three years. “When PLUS was completely acquired by UEM and EPF in 2011, the agreement was renegotiated and reduced to a 5% increase every three years,” he said.

Stating that the last increase in toll rates for PLUS was back in 2005, Fadillah stated that since then, toll rates had not been allowed to increase despite the provision to do so in the 2008 and 2011 agreements. He said that with regards to this matter, the government had compensated PLUS.

The report added that Fadillah said the Works Ministry intends to honour the promise made by the government back in 2013 that it would reduce toll rates gradually on intercity expressways by 2018.