Finance

NHAI Increases Toll Tax by 5%! Here’s How Much More You’ll Pay on Highways!

The NHAI has raised toll tax rates by 5% effective April 1, 2025, affecting 855 toll plazas nationwide. Learn how much more you'll pay on key highways like Delhi-Meerut and NH-9, and discover savings tips, new toll pass plans, and why FASTag matters more than ever.

By Anjali Tamta
Published on
NHAI Increases Toll Tax by 5%
NHAI Increases Toll Tax by 5%

NHAI Increases Toll Tax: Starting April 1, 2025, commuters across India will experience a bump in travel costs as the National Highways Authority of India (NHAI) rolls out a nationwide toll tax hike of approximately 4–5%. This increase applies across more than 850 toll plazas, impacting both private vehicle owners and commercial logistics operators. For many, especially those who travel frequently or rely on highways for daily commutes, this annual toll revision will mean a significant change in their travel budget.

The increase, though modest on a per-trip basis, is part of an annual toll adjustment process linked to the Wholesale Price Index (WPI)—a government economic indicator used to reflect inflation in goods and services. The WPI-based hike ensures that the cost of maintaining and expanding India’s sprawling highway network keeps pace with inflationary pressures.

Whether you’re taking a quick trip to the next city or managing an interstate trucking business, understanding the impact of this toll increase is crucial for budgeting your travel and managing business costs effectively.

NHAI Increases Toll Tax

CategoryDetails
Toll Hike Effective FromApril 1, 2025
Average Increase4–5% on all national highways and expressways
Reason for HikeAdjustment based on WPI inflation index
Number of Toll Plazas855 (675 public-funded, 180 concessionaire-operated)
Notable Roads AffectedDelhi-Meerut, Delhi-Jaipur, Lucknow-Kanpur, NH-9
Example HikeDelhi-Meerut toll: ₹165 to ₹170 for cars
Official Sourcenhai.gov.in
Proposed Relief MeasureAnnual/lifetime toll passes for private vehicles

The 2025 NHAI toll tax hike is a strategic move to align toll collections with inflation and fund essential highway improvements. While this means slightly higher costs for road users, it’s a necessary step toward safer, more efficient, and sustainable national infrastructure.

By embracing smart tools like FASTag, exploring cost-saving alternatives, and preparing for the upcoming toll pass system, Indian commuters can reduce the impact on their wallets and continue to enjoy fast, reliable highway travel.

For further updates, pricing charts, or to lodge toll-related complaints, visit the official NHAI website: https://nhai.gov.in.

Why Has NHAI Increased Toll Tax in 2025?

Each year, NHAI revises toll rates based on the Wholesale Price Index (WPI) to ensure highway revenues reflect prevailing economic conditions. As costs of construction materials, road maintenance, and fuel rise, toll rates must also increase to maintain the viability of infrastructure investments.

In 2024, the WPI showed an increase of around 4.8%, leading to the current toll rate adjustments. These increases help NHAI:

  • Maintain over 1.46 lakh km of national highways
  • Fund development projects under the Bharatmala Pariyojana
  • Service public-private partnership (PPP) contracts
  • Ensure safety and quality of high-speed corridors

Although travelers may feel the pinch, this approach helps maintain India’s rapidly growing and increasingly high-tech roadways.

Real Examples: How Much More Will You Pay?

Here’s a breakdown of toll increases in different parts of India that give an idea of what travelers can expect:

Delhi-Meerut Expressway

  • Cars/Jeeps: ₹170 (was ₹165)
  • Light Commercial Vehicles: ₹275
  • Heavy Trucks: ₹580

NH-9 (Chhijarsi Toll Plaza)

  • Cars: ₹175 (up ₹5)
  • Mini Buses/LCVs: ₹280
  • Heavy Buses/Trucks: ₹590

Lucknow Regional Network (Barabanki, Ayodhya, Kanpur)

  • Cars: Up ₹5–₹10 per trip
  • Buses/Heavy Trucks: Up ₹20–₹25

Delhi–Jaipur Highway (Kherki Daula Toll Plaza)

  • Cars/Jeeps: ₹85 per trip (up ₹5)
  • Monthly Pass for Cars: ₹1,255 (up from ₹1,225)
  • Minibuses/Light Motor Vehicles: ₹125 (previously ₹120)

Over the course of a month, daily commuters could see a ₹100–₹300 increase in total toll expenses, depending on the routes and vehicle types.

How Is Toll Pricing Structured?

Toll rates in India are set according to the National Highways Fee (Determination of Rates and Collection) Rules, 2008, which consider:

  • Distance covered on tolled roads
  • Type and size of the vehicle
  • Category of highway (2-lane, 4-lane, 6-lane, expressway)
  • Cost of construction and maintenance
  • Annual WPI-linked inflation adjustments

Every toll plaza has a display board with the officially approved toll charges. Rates for FASTag and cash users can differ, with FASTag users generally paying lower fees.

How Toll Hikes Are Calculated

The WPI for December of the previous year is the basis for the toll revision. This figure determines the average inflation in wholesale goods and is used by NHAI to compute the percentage hike.

For example:

  • If the WPI was 150 in December 2023 and increased to 157 in December 2024, that’s a 4.6% increase.
  • Hence, tolls are increased by approximately 4.6% on the baseline toll rate.

This mechanism ensures a transparent, formula-driven method for adjusting toll rates.

Who Will Feel the Impact the Most?

  • Long-Distance Trucking Firms: With frequent toll crossings, fuel and toll combined can make up nearly 40% of operational costs.
  • Private Car Owners on Highways: Regular inter-city commuters, especially around Delhi NCR, Mumbai, and Bangalore.
  • Public Transport Operators: Buses passing through multiple toll points will see increased operational expenses.
  • Tourism Sector: Long-distance tour operators may need to increase package costs.

Even casual travelers and vacationing families will need to account for slightly higher road trip budgets.

Government’s Plan for Relief: Toll Passes

In response to the growing concerns of frequent commuters, the Ministry of Road Transport and Highways is considering:

  • Annual Toll Pass: ₹3,000 for unlimited personal vehicle travel across all national highways
  • Lifetime Toll Pass: ₹30,000 for a 15-year validity, valid across India

If introduced, this initiative would particularly benefit:

  • Daily commuters between cities
  • Employees of remote industrial zones
  • People living in highway-adjacent towns

Implementation details and official dates are expected later in 2025.

Smart Ways to Save on Tolls

Here are some tested strategies to keep toll costs in check:

  • Switch to FASTag: Offers lower toll rates and saves time
  • Buy Monthly or Weekly Passes: Ideal for people commuting on fixed routes
  • Combine Trips: Club errands or deliveries to avoid repetitive toll crossings
  • Use Alternate Routes: GPS apps like Google Maps and MapMyIndia help find toll-free or low-toll paths
  • Consider Ride-Sharing: Sharing a ride helps divide toll and fuel costs

FASTag: Your Key to Smarter Travel

With over 6.5 crore FASTag users in India, this system has revolutionized highway travel.

Advantages include:

  • Seamless entry and exit at toll plazas
  • Immediate SMS alerts for every deduction
  • Online recharge and account management
  • Dedicated FASTag lanes for faster clearance

FASTags can be issued through more than 30 banks, including SBI, HDFC, ICICI, and digital platforms such as Paytm, Amazon Pay, and PhonePe.

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Economic Benefits of Toll Revenue

Despite the financial impact on individuals, toll collections provide vital revenue that funds:

  • New infrastructure projects
  • Bridge and tunnel development
  • Safety enhancements and surveillance tech
  • Highway amenities like rest areas, emergency services, and smart traffic systems

In FY 2024–25, NHAI is expected to collect over ₹48,000 crore in toll revenue, a significant portion of which will support national infrastructure growth.

FAQs On NHAI Increases Toll Tax

Q1: Why does NHAI increase toll every April?

A: To adjust for inflation through the Wholesale Price Index and ensure sufficient funds for road maintenance and development.

Q2: Is there any way to avoid toll hikes?

A: You can’t avoid hikes but can reduce expenses using FASTag, passes, or alternate routes.

Q3: Are FASTag and cash payments charged differently?

A: Yes. FASTag users often receive a discount and experience faster processing.

Q4: Will toll passes be valid nationwide?

A: The proposed annual/lifetime passes aim to provide pan-India access for personal vehicles. Details are awaited.

Q5: Where can I file a complaint about toll issues?

A: Call the NHAI helpline 1033 or visit the official website.

Author
Anjali Tamta
Hey there! I'm Anjali Tamta, hailing from the beautiful city of Dehradun. Writing and sharing knowledge are my passions. Through my contributions, I aim to provide valuable insights and information to our audience. Stay tuned as I continue to bring my expertise to our platform, enriching our content with my love for writing and sharing knowledge. I invite you to delve deeper into my articles. Follow me on Instagram for more insights and updates. Looking forward to sharing more with you!

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