# São Paulo Government Retreats on Free-Flow Tolls, Offers Subsidies and Possible Fare Hikes

*Facing falling approval ratings, Governor Tarcísio de Freitas scales back his flagship free-flow toll program after public and political backlash.*

- Published: 2025-10-23
- Section: Insights
- Tags: freeflow, highway
- URL: https://brazilstockguide.com/insights/sao-paulo-government-retreats-free-flow-tolls/

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*Brazil clears auction of BR-116 and BR-251 (Image/Dnit)*

**By Brazil Stock Guide –** The **São Paulo government** is scaling back its **free-flow toll system** after strong public resistance forced **Governor Tarcísio de Freitas (Republicanos)** to suspend several electronic toll points, according to *Folha de S.Paulo*. The decision—driven by declining popularity and mounting protests—will require subsidies and potential fare hikes to preserve the balance of concession contracts.

Five of the eight toll gates planned for the **Raposo Tavares Highway (SP-270)** between **São Roque** and **Sorocaba** were converted into traffic monitoring points. Similar retreats took place on the **Padre Manoel da Nóbrega (SP-55)** and **Luiz de Queiroz (SP-304)** highways after pressure from local mayors and lawmakers, including members of the governor’s own coalition.

A **Modified Addendum Term (TAM)** signed with concessionaire **Rota Sorocabana** grants financial compensation for the canceled tolls, with oversight by the **São Paulo State Transport Agency (Artesp)**. Its CEO, **André Isper**, told *Folha* that the state may redistribute fares or make direct payments to maintain the economic balance of the contracts.

The rollback also affects highways managed by **Concessionária Novo Litoral**, including the **Mogi-Bertioga (SP-098)** and **Rio-Santos (SP-055)** routes, where tolls could rise to offset lost revenue.

The reversal marks a major political setback for Tarcísio’s infrastructure agenda. What was meant to showcase São Paulo’s leadership in **free-flow tolling** has become a cautionary tale about how public opposition—and the politics of pricing—can derail modernization efforts in Brazil’s most developed state.

**Read more:** [Flowback: When Smart Tolling Meets Political Traffic](https://brazilstockguide.com/behind-the-lines/flowback-smart-tolling-political-traffic-brazil/)

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/sao-paulo-government-retreats-free-flow-tolls/