Indian Railways fare hike kicks in December 26: Who pays more and who doesn't

The Railways said the fare revision is aimed at offsetting rising operational costs following a significant expansion of its network and workforce over the past decade.

Train journeys are set to become costlier as Indian Railways implements a fare hike from December 26, though key passenger categories have been spared. While fares for suburban services and short-distance travel remain unchanged, passengers travelling longer distances will have to pay more.

Under the revised fare structure, ordinary-class tickets for journeys up to 215 kilometres (km) will not see any increase. However, for distances beyond 215 km, fares will rise by 1 paise per km. Travel in non-air-conditioned coaches on Mail and Express trains will become costlier by 2 paise per km, while air-conditioned coaches will also see a 2 paise per km hike.

Indian Railways said there will be no fare increase for suburban train services and Monthly Season Ticket (MST) holders, offering relief to daily commuters. Ordinary-class passengers travelling up to 215 km have also been exempted from the hike.

To put the increase in perspective, a 500 km journey in a non-AC coach will now cost Rs 10 more once the new rates take effect.

The Railways said the fare revision is aimed at offsetting rising operational costs following a significant expansion of its network and workforce over the past decade. The latest hike is expected to boost annual earnings by around Rs 600 crore.

According to official data, the Railways' manpower cost has risen to Rs 1.15 lakh crore, while pension expenses stand at Rs 60,000 crore. Overall operational expenditure has increased to Rs 2.63 lakh crore in FY25. To manage these costs, the Railways said it is focusing on higher freight loading and calibrated passenger fare increases.

This is the second fare hike this year. In July, non-AC fares in Mail and Express trains were raised by 1 paise per km, while AC fares went up by 2 paise per km. Prior to that, the last major revision was implemented on January 1, 2020, when second-class, sleeper and AC fares were increased across categories.