Indian Railways announced a marginal hike in passenger fares on Sunday, December 21, 2025, aimed at addressing the mounting operational costs of the national transporter. The revised tariff structure is set to become operational from December 26, 2025, marking the second fare revision in the current financial year following a previous hike in July.
The New Fare Structure: At a Glance
The Ministry clarified that the hike is “limited” and specifically designed to protect daily commuters and short-distance travelers.
| Category | Revised Rate | Distance Threshold |
| Suburban (Local) Trains | No Increase | All distances |
| Monthly Season Tickets (MST) | No Increase | All distances |
| Ordinary Class (Short Distance) | No Increase | Up to 215 km |
| Ordinary Class (Long Distance) | +1 paisa per km | Beyond 215 km |
| Mail/Express (Non-AC Classes) | +2 paise per km | All distances |
| All AC Classes (3A, 2A, 1A) | +2 paise per km | All distances |
Example Impact: For a passenger traveling 500 km in a non-AC coach, the ticket price will increase by approximately ₹10.
Why the Hike? High Operational Costs
The Ministry of Railways attributed the “rationalization” to a massive spike in expenditure over the last decade.
- Manpower & Pensions: Manpower-related expenditure has risen to nearly ₹1,15,000 crore, while pension costs have climbed to ₹60,000 crore.
- Safety & Expansion: The total cost of operations for 2024-25 is estimated at ₹2,63,000 crore. The Ministry stated that increased staffing was necessary to strengthen safety protocols and support the expansion of the world’s second-largest cargo railway system.
- Revenue Target: The fare hike is expected to generate an additional ₹600 crore in revenue by March 31, 2026.
A Focus on Efficiency and Cargo
Despite the hike, the Ministry emphasized that it is seeking to bridge the financial gap primarily through higher cargo loading rather than burdening passengers.
“Indian Railways will continue its focus on efficiency, cost containment, and operational reforms to achieve the goal of affordable and accessible transport for Indian masses,” the official release stated. The railways recently showcased its operational efficiency by mobilizing over 12,000 special trains during the 2025 festival season.
Impact on Key Long-Distance Routes
(Estimated increase in base fare)
- Delhi – Mumbai (~1,400 km): ~₹28 increase
- Delhi – Kolkata (~1,440 km): ~₹29 increase
- Delhi – Chennai (~2,200 km): ~₹44 increase