Pay more if you want to travel using Highways: NHAI hikes Toll by 5%

The National Highways Authority of India, NHAI has announced a big decision of increasing the amount of Toll by 5% which was initially planned to be implemented by 1st April but was postponed because of Lok Sabha Elections. Currently, this decision has been implemented on 3rd June 2024 and will remain in action until further notice. Additionally, This modification is part of an annual process to update toll rates in response to variations in inflation based on the wholesale price index (CPI).

Context and Significance

On national highways, toll revenue has increased dramatically in recent years. Government data indicates that in the fiscal year 2023–24, toll collection exceeded Rs 50,000 crore (till November 2023) in the financial year. Compared to the Rs 25,154.76 crore collected in 2018–19, this is a significant increase. As of November 30, FY24, the nation's total toll length increased from 25,996 km in FY19 to 45,428 km.

Also Read: How to find FASTag customer ID Using the vehicle number

Toll Receiving and FASTag Application

Since all charge plaza lanes on National Highways were designated as FASTag lanes in February 2021, the amount of toll collected by FASTag has increased dramatically. More than 7.98 crore FASTags had been issued as of November 30, 2023. The NH fee plaza's average daily collection via FASTag is Rs 147.31 crore, and in FY 23–24 (until November 2023), the average daily ETC transactions on the NH charge plaza are Rs 86.61 lakh.

Increased Tolls and Their Impact on Drivers

Expressway drivers will be affected by the toll increase and will be required to pay extra as of right now. The toll price adjustment is a component of a yearly process to update the rates in response to variations in inflation based on the wholesale price index (CPI). On the National Highways Fee (Determination of Rates and Collection) Rules, 2008, user fees are collected at approximately 855 user fee plazas on the network of national highways. Approximately 675 of these fee plazas are supported by the government, while 180 are run by concessionaires.

Data on Historical Toll Collection

Toll collection stood at Rs 25,154.76 crore in 2018-19, Rs 27,637.64 crore in 2019-20, Rs 27,923.80 crore in 2020-21, Rs 33,907.72 crore in 2021-22, and Rs 48,028.22 crore in 2022-23.

Overall, The increase in tolls is part of a yearly process to adjust toll prices in response to variations in inflation based on the wholesale price index (CPI). Expressway drivers will be required to pay extra as of today due to the increase in toll prices. With almost 7.98 million FASTags issued and an average daily collection via FASTag of Rs 147.31 crore on the NH charge plaza, the toll collection has increased significantly in recent years.