Indian Railways Rationalises Passenger Fares from December 26, Here's What Changes

Indian Railways has announced a revised fare structure effective December 26. There will be no fare hike for suburban trains, Monthly Season Tickets and Ordinary Class journeys up to 215 km. Longer journeys will see small increases of 1-2 paise/km.

Indian Railways has announced a revised passenger fare structure that will come into effect from December 26, 2025. The move, described as a fare rationalisation rather than a major hike, brings relief to suburban and short-distance travellers while introducing a very small increase for longer journeys. Officials say the change is aimed at meeting rising costs while keeping travel affordable.

No fare increase for suburban and short journeys

Under the new structure, there will be no increase in fares for suburban trains and Monthly Season Tickets (MSTs). This means daily commuters in cities will not have to pay anything extra.

There will also be no fare hike for Ordinary Class journeys up to 215 kilometres. Passengers travelling short distances in Ordinary Class will continue to pay the same fare as before.

Small increase for longer Ordinary Class journeys

For passengers travelling more than 215 kilometres in Ordinary Class, fares will increase by 1 paise per kilometre. Railways said this increase is minimal and designed to have the least possible impact on passengers who travel longer distances.

Revised fares for Mail, Express and AC classes

For Mail and Express trains in Non-AC coaches, the fare will go up by 2 paise per kilometre. The same increase of 2 paise per kilometre will apply to AC class passengers as well.

To explain the impact clearly, Railways said that for a 500-kilometre journey in a Non-AC coach, a passenger will have to pay only Rs 10 extra.

Expected revenue and financial impact

Railway officials estimate that this fare rationalisation will help the Railways earn about Rs 600 crore in additional revenue during the year.

This extra income is expected to support the growing cost of operations, especially as the railway network and services have expanded significantly over the past decade.

Rising costs behind the decision

Indian Railways said it has increased its manpower to improve safety and manage higher operations. As a result, manpower costs have risen to Rs 1,15,000 crore, while pension expenses have gone up to Rs 60,000 crore.

The total cost of railway operations for 2024–25 has increased to Rs 2,63,000 crore, officials said.

Focus on cargo and efficiency

To manage these higher costs, Railways is focusing on higher cargo loading along with a small adjustment in passenger fares. Due to improvements in safety and operations, India has now become the second-largest cargo-carrying railway system in the world.

Officials also pointed to the successful running of more than 12,000 trains during the recent festival season as proof of better planning and operational efficiency.

Commitment to passengers

Indian Railways said it will continue to work towards better efficiency and cost control while meeting its social responsibility of providing affordable transport.

The government stressed that the fare changes are modest and carefully planned so that ordinary passengers, especially daily and short-distance travellers, are protected.

With this new fare structure, Indian Railways aims to balance rising costs with passenger comfort. While long-distance travellers will see a small increase, millions of daily commuters and short-distance passengers will continue to enjoy unchanged fares from December 26.