Indian Railways will revise passenger fares for long-distance travel from December 26, the Ministry of Railways announced on Sunday. The increase will apply to mail and express trains, including AC classes, while suburban services and short-distance travel will not see any change.
In an official statement, the ministry said the fare revision has been introduced to meet rising manpower and pension expenses and to support operational costs. It added that the overall impact on passengers would be limited.
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According to the ministry, the rationalisation of fares is expected to generate additional revenue of about ₹600 crore.
Rising costs cited as reason for hike
Indian Railways said expenditure on manpower has risen to nearly ₹1.15 lakh crore, while pension costs have increased to around ₹60,000 crore. Total operational expenses for the 2024–25 financial year have gone up by ₹2.63 lakh crore.
According to the ministry, the railway network has expanded significantly over the last ten years, which has increased the need for employees, especially in positions related to safety. The fare revision is a component of measures to control these expenses while preserving affordability, it further stated.
Indian Railways last raised fares in July 2025.
Revised fare structure
As per the revised tariff:
Mail and express trains in non-AC categories will see an increase of 2 paise per kilometre
All AC classes will also see a uniform hike of 2 paise per kilometre
Ordinary-class passengers travelling beyond 215 kilometres will pay 1 paise more per kilometre
There will be no increase in fares for suburban services, monthly season ticket holders or ordinary-class passengers travelling up to 215 kilometres.
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The Railways said the exemption is intended to ensure that daily commuters are not affected by the revision.
Focus on safety and capacity
The ministry said the additional revenue will support safety measures, manpower deployment and operational efficiency. It noted that Indian Railways has operated more than 12,000 special trains this year to manage passenger demand and continues to expand its freight operations.
