Rail Fares Get Marginal Hike from December 26 as Indian Railways Eyes Higher Revenue

23 Dec 2025
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Indian Railways introduces a small fare hike from December 26 to boost revenue, sparking debate on affordability, safety and service upgrades.

From December 26, Indian Railways will implement a modest fare increase across select travel categories, marking another step to shore up its finances. Under the revised structure, ordinary class tickets will cost an extra one paise per kilometre for journeys beyond 215 km, while mail, express and AC classes will see a rise of two paise per kilometre.

Railway officials say the adjustment is expected to generate around ₹600 crore in additional revenue this year. Short-distance travel, suburban services and season tickets have been kept out of the hike, with authorities stressing that daily commuters will not be affected. For long-distance passengers, the impact remains limited—a 500-km non-AC journey, for instance, will cost roughly ₹10 more.

The fare revision comes months after a similar tweak in July that reportedly boosted earnings significantly. Rising expenditure on salaries, pensions and maintenance has been cited as a key reason for the move. Opposition parties, however, argue that higher fares should be matched with faster upgrades in safety, staffing and passenger amenities.

While the increase is financially minor for most travellers, it reflects a larger debate on how India’s rail network balances affordability with mounting operational costs. For passengers, transparency on how added revenue improves safety and services may matter more than the small extra amount on the ticket.