Indian Railways announces fare hike from December 26: All you need to know

Indian Railways announces revised passenger fares from December 26, with no change for suburban trains and short-distance travellers.

Indian Railways has announced a revision in passenger fares that will come into effect from December 26, 2025, marking the first such move this year. The decision, described as a rationalisation of fares, is aimed at offsetting rising operational costs while keeping the impact on everyday travellers limited.

The Ministry of Railways said the revised structure has been carefully designed to protect short-distance commuters and low-income passengers, even as select long-distance and premium travel categories see a marginal increase.

Who will not be affected?

In a relief for millions of daily commuters, there will be no fare hike for suburban train services and Monthly Season Ticket (MST) holders. Ordinary-class passengers travelling up to 215 kilometres will also continue to pay the existing fares, with no change announced.

The Railways said this exemption is meant to preserve affordability for daily and short-distance travel, particularly for low- and middle-income families who rely heavily on train services.

Where fares will increase

Passengers travelling longer distances or opting for Mail and Express services will see a modest rise in ticket prices:

• Ordinary class (beyond 215 km): Fare to increase by 1 paise per kilometre.
• Mail and Express trains (non-AC): Fare to increase by 2 paise per kilometre.
• Mail and Express trains (AC classes): Fare to increase by 2 paise per kilometre.

To put the hike into perspective, the Railways said a 500-kilometre non-AC journey will now cost just Rs 10 extra, underscoring the limited financial impact on passengers.

Category-wise fare changes at a glance

• Suburban trains and MSTs: No change.
• Ordinary class up to 215 km: No change.
• Ordinary class beyond 215 km: +1 paise per km.
• Mail/Express non-AC: +2 paise per km.
• Mail/Express AC: +2 paise per km.
• 500 km non-AC journey: +Rs 10.

Why Indian Railways revised fares

According to the Ministry, the fare rationalisation is expected to generate around Rs 600 crore in additional revenue. A previous fare revision had already yielded nearly Rs 700 crore, strengthening the Railways’ financial position.

At the same time, operating costs have continued to rise sharply. For 2024–25, the total operating expenditure is estimated at Rs 2.63 lakh crore, driven largely by investments in safety and manpower. Expenditure on manpower alone has climbed to nearly Rs 1.15 lakh crore, while the pension bill has surged to Rs 60,000 crore.

The Ministry said these investments are already translating into improved safety and efficiency across the network.

More trains for the holiday rush

Alongside the fare revision, Indian Railways has stepped up preparations for the Christmas and New Year travel rush. So far, 244 additional train trips have been introduced, with more special services expected in the coming days.

Special trains are being operated on high-demand routes connecting Delhi, Howrah, Lucknow and nearby cities, catering to long-distance travellers heading home or travelling for the festive season.

Bigger picture

Indian Railways noted that continued reforms have helped it emerge as the world’s second-largest cargo railway system, while also improving passenger handling during peak periods. During the recent festival season, over 12,000 special trains were operated to manage crowd pressure.

Looking ahead, the Ministry said the focus will remain on efficiency, cost control and operational reforms—while keeping rail travel affordable and accessible for the wider public.