Railways raises passenger fares from December 26 as costs mount

Indian Railways will implement a revised passenger fare structure from December 26, 2025, introducing a modest hike aimed at offsetting rising operational and manpower costs, even as suburban commuters and short-distance travellers remain insulated from the increase.

Under the rationalized fares, non-AC passengers travelling up to 500 km will pay an additional ₹10, while no fare hike will apply to journeys of up to 215 km in the ordinary class. Suburban services and Monthly Season Tickets (MSTs) have been completely exempted from the revision.

For Mail and Express trains, fares in non-AC coaches have been increased by 2 paise per kilometre, with a similar 2 paise per kilometre hike in AC classes. The railways estimates the revised structure will generate around ₹600 crore in additional revenue during the current financial year.

Explaining the move, the national transporter said its network and operations have expanded substantially over the past decade, reaching remote regions and significantly increasing service intensity. This expansion, coupled with enhanced safety measures, has sharply pushed up costs.

“Manpower expenses have risen to ₹1.15 lakh crore, while pension liabilities now stand at ₹60,000 crore. Overall operational expenditure has climbed to ₹2.63 lakh crore in 2024–25,” the railways said in a statement.

To bridge the gap, Indian Railways is focusing on boosting freight movement while introducing only a limited rationalization of passenger fares, it added. The strategy, officials said, has already delivered results.

India has emerged as the second-largest cargo-carrying railway system in the world, while recent operations — including the mobilisation of over 12,000 trains during the festival season — have highlighted gains in efficiency and safety.

The fare revision, the railways stressed, balances financial sustainability with passenger protection, keeping the impact minimal for daily commuters and short-haul travelers.