Motorways: Are They 60% Too Expensive?

Le Canard Enchaîné reveals a government report stating that the profitability of highways is excessively high and suggests radical solutions, including a 60% price reduction.

Every year, private companies increase toll prices on highways in France. The increase varies by year, for example an average of 4.75% at the start of 2023. In the end, a drive on highways is becoming more and more expensive, but by how much?

The report that hurts

This was the focus of an investigation by the General Inspection of Finances and the Ministry of Ecology. The report dates back to February 2021, submitted to Minister of Economy Bruno Le Maire, but only surfaced this week thanks to the Golden Globes of Le Canard Enchaîné. This document was about “the economic model of highway concession companies (SCA)”, highlighting “profits much higher than expected”. According to the newspaper, the profitability today is around 12%, compared to 7.67% for the target during privatizations in 2006. The report cites a lack of involvement in negotiations on tariffs for SCAs which “collect around 11 billion euros annually in tolls”.

Should we lower highway prices by 60%?

The inspectors and authors of this report do not just give an overview but also propose three rather radical solutions. The most realistic is the “early termination” of highway concessions in 2026, instead of 2031 to 2036. The two others are considered “illustrative values” and thus not legal.

They include either the extraction of excess revenue by the State, or a nearly 60% reduction in tolls. The latter measure would result in “an estimated saving of about 21 euros on a Marseille-Toulouse trip”, or 35€ for Paris-Lyon, according to Le Canard Enchaîné! Dare to try?

Also read: A toll-free highway, a first in France