The Old Way of Calculating Tolls
Until recently, paying toll on a highway stretch that included a major bridge, tunnel, or long elevated corridor often felt disproportionately expensive. This was by design. To recover the high costs of constructing and maintaining this special infrastructure,
the National Highways Fee Rules had a provision that treated the length of such structures as a multiple of their actual distance, often ten times. For example, travelling on a 10 km stretch of highway that included a 2 km long bridge could mean you were charged for a 'tollable distance' of (8 km + 2 km 10) = 28 km. This ensured that complex and expensive engineering projects were paid for, but it could lead to significantly higher charges for commuters, especially on routes dominated by such structures.
Introducing the New, Capped Formula
The Ministry of Road Transport and Highways amended the rules in early July 2026, and the NHAI is now implementing a new formula that introduces a crucial cap on the chargeable distance. The new system requires toll operators to perform two calculations and then charge the commuter based on whichever amount is lower. The two calculations are: 1. The old method: The length of the normal highway plus 10 times the length of any structures (bridges, tunnels, etc.). 2. The new cap: The total length of the entire highway section multiplied by five. By forcing the use of the lower of these two figures, the government has created a ceiling that prevents tollable distances from becoming excessively long. It is important to note that structures less than 60 metres in length are not treated separately in this calculation.
How It Translates to Real Savings
The impact of this change is best understood with an example provided in the official gazette notification. Consider a 40 km highway section that is almost entirely composed of complex structures, like 30 km of bridges and flyovers and only 10 km of regular road. Under the old system, the chargeable distance would have been a staggering 310 km (10 km + 30 km 10). Under the new rule, the operator must also calculate the second option: the total highway length of 40 km multiplied by five, which equals 200 km. Since 200 km is lower than 310 km, the toll will now be based on this much shorter chargeable distance, leading to a significant reduction in the fee. In another scenario, a 40 km stretch with 10 km of structures would be charged for 130 km, not 200 km, again because it's the lower of the two calculations.
Why This Change and Who Benefits?
The primary goal of this revision is to balance the need to fund expensive infrastructure with making highway travel more affordable and equitable for citizens. The previous formula, while logical for cost recovery, lacked an upper limit and could place a heavy burden on commuters on certain routes. This new method rationalises the tolling process. The main beneficiaries are frequent travellers and commercial vehicle operators using highways with a high density of tunnels, long bridges, and elevated corridors. For these users, the change could mean a noticeable decrease in travel expenses and operational costs. For drivers on highways without such major structures, toll charges are unlikely to change.
Looking Ahead: GPS and Barrier-Free Tolling
This formula change is part of a broader push to modernise India's toll collection system. While it refines the existing FASTag framework, the government is also actively working on the next evolution: a GPS-based, barrier-free tolling system. This future model aims to eliminate toll plazas altogether, using satellite technology to track the exact distance a vehicle travels on a highway and deducting the precise toll automatically. Pilot programs for this 'pay as you use' system have been in the works, promising an even fairer and more seamless travel experience by charging only for the distance covered. With FASTag penetration already high and toll revenues climbing, the move towards a more sophisticated and user-friendly system continues to gain momentum.
