Toll increases due to inflation rally – Travel costs skyrocket

We are likely to see a wave of toll increases in 2023. This is because road concessions are linked to the price index and follow inflationary trends as recorded in the Consumer Price Index.

A difficult equation

This means that we may see significant increases from January 1, 2023, at rates we have never seen before. Of course, the large increase in tolls is not a simple matter.

An excessive increase that would closely follow this year's inflation, which reaches over 10%, may mean increased revenue for concession companies, but it may also mean a decrease in traffic or a shift to other modes of transportation.

Here we should mention that in previous years, increases fluctuated around a few cents of a euro, while there were also years when we saw small decreases when the country was in recession. The current environment, with very high inflationary pressures, is not at all favorable.

What will happen if tolls increase?

If, for example, there will be an increase of 10%, then the Athens-Thessaloniki journey for private vehicles will increase by €3-4, while for trucks, this increase will be much greater.

The big issue is that concession contracts link the annual increase in toll prices to the price index, which in practice creates a situation that is difficult to overcome.

In addition, maintenance costs have de facto increased, as we are talking about vehicle traffic, asphalt paving, street lighting, etc., works that have seen significant increases over the last year and a half.

What we need to see is how this issue will develop, i.e. whether there will be any consultation with the Ministry of Infrastructure and Transport.

Attiki Odos

The increase in costs also affects Attiki Odos, but the road on which they travel cumulatively as much as they travel on all motorways together. it is a «gray area». It is estimated that every day, more than 200,000 vehicles use the Attica urban motorway, generating significant revenue for its concessionaires.

The toll is €2.80, an amount that has remained unchanged for several years. It is worth remembering, of course, that in 2019, when an increase had been attempted, which ultimately returned to the drawing board, but under completely different circumstances than today.

The model change being prepared with the new contract may not be far off, as recently the CEO of TAIPED, Dimitris Politis, stated that «we have proposed a pricing model that will vary depending on the time of use of the axis and will contribute to more efficient traffic load management. We estimate that the submission of financial bids will be completed by the end of the first half of 2023.».

However, at a time when the issue of increases and the size of increases from the new year appears to be opening up, it seems that it will bring a «hot» autumn until a solution—whether commonly accepted or not—is finally reached.