India's National Highways Authority of India (NHAI) has increased toll rates by an average of 5% nationwide. This hike, which took effect on June 3rd, 2024, was originally planned for April 1st but postponed due to the Lok Sabha elections.
Reason for the Hike:
- To adjust for inflation: The annual toll revision aims to keep pace with rising costs, as measured by the Consumer Price Index (CPI).
How Tolls Work in India:
- There are around 855 toll plazas on national highways.
- Tolls are collected based on the National Highways Fee rules.
- Some plazas are government-funded (around 675), while others are operated by private companies (around 180).
Impact of the Hike:
- Toll collection growth is expected to slow down due to lower inflation.
- Increased FASTag adoption and traffic growth have led to higher toll revenue in recent years.
