Starting Monday, India will hike road toll charges across the country by 3-5%, according to officials. The annual increase, which was postponed in April due to the general elections, is now set to take effect.
Toll charges in India are revised annually in accordance with inflation. Highway operators have published notices in local newspapers, announcing the hikes at nearly 1,100 toll plazas from Monday. “As the election process is over, the revision of user fee rates, which was put on hold during the elections, would become effective from June 3,” a senior official at the National Highways Authority of India told Reuters.
The increase in toll charges and taxation on fuel products helps fund the expansion of national highways. However, opposition parties and many motorists criticize the annual rise, arguing that it increases transport costs for essential commodities and burdens commuters.
Highway operators like IRB Infrastructure Developers and Ashok Buildcon Ltd are expected to benefit from the toll increases. India has invested billions of dollars over the past decade to expand its national highways, which now span about 146,000 kilometers, making it the second-largest road network in the world.
Toll collections surged to over 540 billion rupees in the 2022/23 fiscal year, up from 252 billion rupees in 2018/19. This growth is attributed to a rise in road traffic, as well as an increase in the number of toll plazas and charges.
