Understanding PQP: How Your COE Renewal Cost Is Calculated
In This Guide
What is PQP?
PQP stands for Prevailing Quota Premium. It is the price used to calculate how much you pay when you renew your COE. If you are renewing for 10 years, you pay 100% of the PQP. If you are renewing for 5 years, you pay 50% of the PQP.
How PQP is Calculated
The PQP is a 3-month moving average of the Quota Premium (QP) from the most recent three bidding exercises for the same COE category.
In practice, this means:
- LTA looks at the QP (winning bid price) from each of the last 3 bidding exercises for your category
- It calculates the simple average of those 3 figures
- That average becomes the PQP used for renewals processed during the current month
LTA updates the PQP after each bidding exercise. Because it is a moving average of three exercises, the PQP changes more slowly and smoothly than the latest bid price — it dampens sudden spikes or drops.
PQP vs Latest COE Bid Price
Many vehicle owners confuse the PQP with the latest COE bidding result. They are different figures and serve different purposes:
| COE Bid Price (QP) | PQP | |
|---|---|---|
| What it is | The actual clearing price from the latest bidding exercise | 3-month moving average of QP |
| Changes | Every bidding exercise (twice monthly) | After each bidding exercise, but more gradually |
| Used for | Buying a new vehicle | Renewing an existing COE |
| Volatility | Can jump or fall sharply | More stable — dampened by the averaging |
Current PQP Values
PQP values are published by LTA and updated by COEPLUS after each bidding exercise. The COEPLUS Calculator always uses the most current PQP figures. Click the ↻ Refresh button in the calculator to load the very latest values.
| Category | Vehicle Type | PQP (June 2026, indicative) |
|---|---|---|
| Cat A | Cars ≤1,600cc and ≤130bhp | ~S19,432 |
| Cat B | Cars >1,600cc or >130bhp | ~S21,000 |
| Cat C | Goods vehicles and buses | ~S3,500 |
| Cat E | Open category | ~S23,000 |
⚠ PQP values change regularly. Always use the COEPLUS Calculator for the latest figures before making any decisions.
How PQP Affects Your Renewal Cost
Your renewal cost is determined entirely by the PQP at the time your renewal is processed — not when you begin the application. This means:
- If PQP rises between when you start your application and when it is processed, you pay the higher amount
- COEPLUS monitors PQP movements and advises clients on optimal timing where possible
- The PQP used is always the one published by LTA at the time of your renewal registration
Does Timing Your Renewal to PQP Matter?
Theoretically, renewing when the PQP is lower saves money. In practice, timing the PQP is difficult because:
- PQP movements are hard to predict — COE prices depend on demand, LTA quota decisions, and economic conditions
- You can only renew up to 3 months before your COE expires — so your timing window is limited
- Waiting too long risks your COE expiring, which makes the vehicle illegal to drive
See Your Exact Renewal Cost with Live PQP
The COEPLUS Calculator updates automatically with the latest PQP values. Get your monthly repayment estimate in seconds.
