Indian Railways has announced a hike in long-distance travel fares effective December 26, while keeping suburban and daily commuter fares unchanged to ensure affordability for regular passengers. According to the Ministry of Railways, the revised tariff will primarily impact long-distance passengers, with the move aimed at generating an additional ₹600 crore in revenue. The ministry clarified that the fare hike will have a “limited financial impact” on most travelers.
Explaining the need for the revision, the Railways said the increase is driven by a steep rise in manpower expenditure, which has climbed to nearly ₹1,15,000 crore, while pension liabilities have surged to ₹60,000 crore. The financial year 2024–25 also saw total operating expenses rise by ₹2,63,000 crore. Over the past decade, the Railways has expanded its network operations and manpower strength, significantly boosting safety, efficiency and cargo handling—operating more than 12,000 special trains this year alone.
Under the new fare structure, mail and express non-AC categories will see an increase of 2 paise per kilometer, while all AC classes will also experience a uniform hike of 2 paise per kilometer. For ordinary-class passengers travelling beyond 215 km, fares will rise by 1 paise per kilometer. There will be no increase for suburban services or monthly season ticket (MST) holders, ensuring relief for daily commuters and short-distance travelers.
The Railways, which last increased travel fares in July 2025, said the latest revision aligns with its long-term goals of efficiency, cost containment, and operational reform. Along with the fare update, the ministry is also boosting cargo loading to offset manpower costs and maintain its position as the world’s second-largest cargo railway system. The revised tariff aims to balance financial sustainability with affordable transportation for millions of Indian passengers.
