The Key Change in Toll Calculation
The Ministry of Road Transport and Highways has officially amended the National Highways Fee Rules of 2008. The change, which took effect in early July 2026, specifically targets how tolls are calculated on highway sections that include major structures
like bridges, tunnels, flyovers, or elevated corridors. Previously, the cost of building and maintaining these expensive structures was recovered by applying a steep multiplier to their length. Now, the NHAI has introduced a new system that essentially puts a cap on how much can be charged, ensuring a fairer deal for motorists.
Old Method vs. New Formula
To understand the savings, it helps to see the before and after. Previously, the tollable length for a major structure (over 60 metres long) was simply calculated as ten times its actual length. This could lead to very high charges on routes with extensive bridges or tunnels. The new rule requires authorities to calculate the tollable distance in two ways and then apply whichever one is lower. The two methods are: 1. Ten times the length of the structure plus the length of the remaining normal highway. 2. Five times the total length of the entire highway section (including both the structure and the road). By mandating the lower of these two options, the rule prevents disproportionately high toll charges. For instance, on a 40-km highway with 30 km of structures, the chargeable length under the new rule drops to 200 km instead of a whopping 310 km under the old system.
Who Benefits and By How Much?
This change will bring the most significant relief to commuters who frequently travel on highways with long elevated sections, numerous flyovers, or tunnels. While it doesn’t mean every toll in the country will decrease, it introduces a more rational pricing system for complex and costly infrastructure projects. The exact savings depend entirely on the specific highway and the proportion of its length composed of these major structures. For some routes, the reduction could be substantial, with some reports suggesting potential savings of up to 40% in certain cases where the old formula was particularly punitive. This will benefit private car owners and could also lower operating costs for commercial transport and logistics companies on eligible routes.
Why the Government Made This Change
The government's stated aim is to strike a better balance between two competing needs: recovering the high costs associated with building and maintaining sophisticated highway infrastructure and ensuring that toll fees remain affordable for the public. The previous 10x multiplier was designed to account for the massive investment required for tunnels and bridges compared to standard roads. However, without an upper limit, it could sometimes result in excessive fees. This amendment introduces a ceiling, making the toll system fairer while still acknowledging the higher infrastructure costs.
When and Where to Expect Lower Tolls
The implementation of these new rates will be gradual. The revised formula applies immediately to any newly operational toll plazas. For existing, publicly funded toll plazas, the change will take effect from their next scheduled user fee revision date. However, for highways operated by private companies under concession agreements, the new formula will only apply after the concession period ends and the project is transferred back to the government. Therefore, while the policy is now in place, it will take time for the savings to appear across the entire national highway network. Commuters will need to watch for announcements regarding specific toll plazas as they adopt the updated calculation method.
