Tolls on roads are spreading mainly because traditional road funding no longer covers costs.

Key reasons:

• Fuel taxes are no longer enough: Roads were historically funded by petrol taxes, but cars are more fuel-efficient and tax rates haven’t kept up with inflation.
• Rising maintenance costs: Governments are spending far more on roads than they collect in fuel taxes, creating large funding gaps.
• Political resistance to higher taxes: Increasing fuel taxes is unpopular, so governments look for alternatives.
• Tolls shift costs to users: Charging drivers directly is seen as a fairer way to fund roads, especially for out-of-state users who don’t pay local taxes.
• Congestion management: Variable tolls can reduce traffic by charging more during peak times.
• Policy changes: Some regions are now allowing tolls on roads that were previously toll-free, accelerating their spread.

In short: governments need more reliable funding for roads, and tolls are a politically viable way to raise it while also managing traffic.

This is a summary of an article in The Economist 20 December 2025

Nick Szwed