Railway fares to rise quietly from December 26? Congress flags ‘secret’ hike before budget

Ne Delhi: Indian Railways has announced a rationalisation of passenger fares with effect from December 26, 2025, citing rising operational, manpower and pension costs.

Under the revised structure, there will be no increase in fares for suburban services, monthly season tickets, or ordinary class journeys up to 215 kilometres.

For ordinary class travel beyond 215 kilometres, fares will rise by 1 paise per kilometre. Mail and express non-AC trains will see a hike of 2 paise per kilometre, while all AC classes will also witness an increase of 2 paise per kilometre. As a result, a passenger travelling 500 kilometres in a non-AC coach will pay an additional ₹10.

Railway officials said the fare rationalisation is expected to generate around ₹600 crore in additional revenue during the current financial year. The railways’ total operational expenditure has risen to ₹2.63 lakh crore in 2024–25, with manpower costs at ₹1.15 lakh crore and pension liabilities touching ₹60,000 crore.

According to officials, the modest fare adjustment is part of a broader strategy to balance affordability with financial sustainability, alongside increased focus on cargo loading. Indian Railways has highlighted improved safety outcomes, expanded network operations, and the successful running of over 12,000 trains during the recent festival season. It has also reiterated that India is now the world’s second-largest cargo-carrying railway.

However, the timing and manner of communication have drawn political criticism. Congress spokesperson Pawan Khera alleged that the revised fare note was circulated unofficially to journalists covering the railway beat ahead of the annual budget. In a post on X, he criticised the government for increasing fares just weeks before the budget and termed the alleged quiet circulation as “surreptitious”.

The Railways has maintained that the rationalisation is limited in scope and necessary to meet rising costs while continuing to meet its social obligations. Officials added that further efforts will be made to improve efficiency and contain expenditure.