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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.

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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

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