National News

NHAI Raises Highway Toll Rates Nationally, Average Increase at 5%

Sentinel Digital Desk

Published:3rd Jun, 2024 at 2:54 PM

GUWAHATI: Starting Monday, drivers on expressways will need to pay more because the National Highways Authority of India (NHAI) has decided to increase toll charges nationwide by an average of 5%.

This adjustment in highway toll fees, which was initially planned for April 1, has been postponed due to the Lok Sabha elections.

A senior NHAI official announced on Sunday that the new user fee would be implemented starting from June 3, 2024.

The increase in toll fees is a regular yearly adjustment tied to changes in the wholesale price index (CPI)-based inflation.

There are about 855 toll booths on the national highway system where tolls are collected according to the National Highways Fee (Determination of Rates and Collection) Rules, 2008. Of these, approximately 675 are toll booths funded by the government, and 180 are managed by private concessionaires.

The NHAI raises toll fees annually to keep up with inflation, using the Wholesale Price Index (WPI) as a reference. There are about 855 toll plazas on national highways, which fall into two categories: those funded by the government and those operated by private companies.

This change is happening at a time when toll collection is increasing significantly.

According to government data, toll collections surpassed Rs 50,000 crore by November 2023 for the fiscal year 2023-24.

This increase is credited to more tolled roads and the widespread use of FASTags, an electronic toll collection system.

The length of national highways where tolls are collected has almost doubled in the last five years, increasing from 25,996 km in FY19 to 45,428 km as of November 2023.

FASTag usage has grown significantly since February 2021, when all lanes at national highway toll plazas were converted to FASTag lanes.

By November 2023, more than 7.98 crore FASTags had been issued. The average daily collection through FASTag was Rs 147.31 crore, with an average of Rs 86.61 lakh daily transactions recorded in the fiscal year 2023-24.