Traffic jams interfere with the drivers and cost billions of dollars per year and lead to a substantial increase in fuel consumption. In order to avoid such problems the paper describes the algorithms for traffic management in intelligent transportation system, which collects traffic information in real time and is able to detect and manage congestion on the basis of this information. The results show that the proposed algorithms reduce the average travel time, emissions and fuel consumption. In particular, travel time has decreased by about 23%, the average fuel consumption of 9%, and the average emission of 10%.