The cost of tolls on new roads is becoming unsustainable and could be increasing congestion on suburban streets, the NRMA has told a NSW parliamentary inquiry.
NRMA policy and public affairs director Robert Giltinan told the road tolling regimes inquiry a "patchwork" of tolls that comprise the road network had created inefficiencies.
"Ultimately those roads are put in place to reduce congestion and reduce travel times ... we want to encourage the use of those particular roads, not putting in place impediments that forces traffic on to local roads," Mr Giltinan said on Monday.
Freight companies were avoiding toll roads and there was a perception among drivers in western Sydney that there's "a greater propensity to use local roads'," he said.
"The general feel is that toll roads don't provide value for their purposes and that's part of this patchwork we now have in place. Motorways have been built on a project-by-project basis", he said.
The NRMA submitted to the inquiry in May that infrastructure funding should be changed to a "broad-based road user charging scheme" because infrastructure investment wasn't keeping pace with population growth, the roads weren't being adequately maintained and fuel excise revenue would decline as people switched to electric vehicles.
The motorist association has called for a third party that's independent of road financiers and the government to assess future contract negotiations.
It's also called for toll-free periods when new motorways open so drivers can assess their value and a more standardised approach to tolls to avoid some parts of Sydney being exposed to higher road-usage charges than others.
Any changes to road-user charges in the short term would be counter-productive if they discouraged people from transitioning to electric vehicles, the NRMA said.
Parliamentary secretary for infrastructure Shayne Mallard sought assurance from the NRMA that it supported toll roads and using the money they generate to fund improvements on rural and regional roads that the government can't toll and that the private sector won't finance.
Mr Giltinan said there was "no argument" about the benefits of private sector investment and that NRMA had no issue with the financing, but "there's a better way to do it, because there's current inequities in the pricing".
Mr Mallard said city drivers were paying for huge investments to improve safety on rural and regional roads which have higher fatality rates due to "black spots" that were now being fixed.
Mr Giltinan said more detail and oversight on concessions given to financiers to attract funding for infrastructure would boost public confidence in new road projects.
Opposition roads spokesman John Graham told AAP the inquiry will go into next year, and will eventually call toll road operator Transurban and the government.
He said the "costs are outweighing the benefits" for the average driver as well as freight companies to use toll roads which now surround Sydney.
