Highway tolls burning a hole in your pocket? The government has a plan

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Subscribe to enjoy similar stories. Highway tolls are eating into commuters’ budgets, with costs rising year after year. Now, the government is weighing a plan to offer discounted toll passes that could bring relief to regular highway users, according to two people familiar with the matter.

The proposed system would provide monthly, quarterly, or annual passes at discounted rates, reducing overall toll expenses for frequent travellers. The extent of the discount is being designed to provide meaningful savings for frequent highway users, said one of the persons cited above. “Various models are being explored to ensure the offering remains attractive." Read this | India cuts new highway target for FY26. But it is for the better The move comes amid growing concerns over the rising cost of highway travel in India.

Many newly developed routes are lined with multiple toll booths, significantly raising travel costs for both private and commercial vehicles. For instance, a one-way journey along the under-construction 1,386-km Delhi-Mumbai expressway could cost between ₹1,000 and ₹3,000, depending on the vehicle type. Toll rates are typically determined by factors such as road construction costs and the presence of infrastructure like bridges and overpasses.

According to a report by rating agency Icra Ltd, toll charges increased by over 3% in FY25 and are projected to rise by 3.5-4.2% in FY26. Read this | Highway toll revenue growth slows, may fall short of FY25 target The toll pass framework aims to ensure that highway concessionaires—private firms operating toll roads—do not suffer revenue losses. Any shortfall would be compensated through government budgetary allocations, said the other person familiar with the plan.