Govt Slashes National Highway Toll Rates by 50%, Launches FASTag Annual Pass

In a major relief to highway commuters, the Government of India has announced a 50% reduction in toll rates on select stretches of National Highways. This includes roads with heavy infrastructure such as bridges, tunnels, flyovers, and elevated corridors. The revised toll structure, notified by the Ministry of Road Transport and Highways (MoRTH) on July 2, 2025, aims to make road travel more affordable while ensuring fair toll collection practices.

 

Under the updated National Highways Fee Rules, 2008, tolls on such stretches will now be calculated using a more rational formula. Instead of the earlier method that charged tolls based on ten times the length of the structure, the new rule allows tolls to be calculated on the lower of either ten times the structure’s length or five times the total highway section’s length. This change is expected to significantly reduce toll charges, especially on routes dominated by elevated or tunnel sections.

 

Adding to the commuter-friendly reforms, Union Minister Nitin Gadkari also announced the launch of a FASTag-based annual pass for private vehicles. Priced at ₹3,000, the pass will be valid for 200 trips or one year—whichever comes first. Available from August 15, 2025, this pass is aimed at non-commercial vehicles like cars, jeeps, and vans, and is expected to benefit frequent travelers by offering a cost-effective and seamless toll payment solution.

 

These twin measures are part of the government’s broader effort to modernize India’s road infrastructure while easing the financial burden on citizens. By reducing toll rates and introducing a flexible annual pass, the government hopes to encourage greater use of highways, promote digital toll collection through FASTag, and enhance the overall travel experience for millions of road users across the country.