Tolls on Irish roads are “highly likely” to increase in 2024, an Oireachtas committee has heard. The potential increase would come six months after a prior increase in cost, with a deferral of toll hikes for 2023 set to expire at the end of this month.
Speaking before the Oireachtas Joint Committee on Transport and Communication on Wednesday, Peter Walsh, CEO of Transport Infrastructure Ireland (TII), said that although exact figures for 2024 would not be known until September, further toll increases caused by inflation are anticipated at the end of the year.
“Preliminary calculations indicate that any increase in 12-month Consumer Price Inflation (CPI) to August greater than three per cent will lead to toll increases for all vehicle categories (save for motorbikes) on all toll roads,” he said.
“CPI figures for the nine-month period from August 2022 to May 2023 currently stands at 4.6 per cent. It is therefore considered highly likely that toll rates will increase in January 2024.”
Buying a new car in 2025? These are the best ways to finance it
The best crime fiction of 2024: Robert Harris, Jane Casey, Joe Thomas, Kellye Garrett, Stuart Neville and many more
We’re heading for the second biggest fiscal disaster in the history of the State
Housing in Ireland is among the most expensive and most affordable in the EU. How does that happen?
If that inflation figure hits five per cent, motorcycles and cars will see a 10c increase to their toll charges next year on the eight “concession roads” run by TII. These roads include the M1, M3, M4, N6, M7, M8, N25 Waterford bypass and N18 Limerick Tunnel. The M50 also falls under TII’s remit.
Buses, coaches, light goods vehicles and heavy goods vehicles (HGVs) of three axles and lower will face a 20c rise. HGVs of four or more axles are set to pay 40c more.
[ Who runs Ireland’s road tolls and who gets the money?Opens in new window ]
The potential higher costs in 2024 would come six months after another increase, with toll prices set to rise at the end of this month once the ongoing six-month deferral comes to an end. Last November, TII first announced toll increases for 2023 on a number of national roads but these were delayed at the request of Government after negative reaction to the increases during the winter cost of living crisis.
The deferral will expire on June 30th. Next month, tolls on the M50 will go up by 30c for cars without eToll tags or video accounts, leaving the price per journey at €3.50. Those with tags or video accounts will be charged 20c more, leaving the price at €2.30 for the former, €2.90 for the latter.
According to Mr Walsh, the cost of the deferral to TII on the M50 alone is “expected to be in the region of €7.2 million.” He said that the cost of the deferral on the other eight concession roads run by TII, “inclusive of advisory costs and additional administration charges, is expected to be approximately €7.6 million,“ leaving a total cost of €15.2 million to the deferral.
“The cost of operating and maintaining the national road toll increases and on-going projects network must be funded,” said Mr Walsh. “If the funding provided by tolls is reduced, the shortfall must be made up by general taxation levied from people some of whom are not using the toll roads.”
