Indian Railways to Rationalise Passenger Fares from December 26. Getty Images

Indian Railways will rationalise passenger fares from December 26, 2025. The revision introduces small increases for longer journeys and certain categories, while keeping suburban and short-distance fares unchanged.

Officials said the move aims to balance rising operational costs while keeping travel affordable for the majority of passengers.

Marginal increase for longer journeys

For ordinary class travel beyond 215 km, fares will rise by 1 paisa per kilometre. This means the increase will be minimal for most long-distance passengers.

In Mail and Express Non-AC trains, fares will go up by 2 paise per kilometre. AC class fares will also see an increase of 2 paise per kilometre across categories.

According to officials, a passenger travelling 500 km in a Non-AC coach will pay only Rs 10 extra.

No change for suburban and short-distance travel

There will be no increase in fares for suburban train services or monthly tickets, offering relief to daily commuters. Ordinary class travel for distances of up to 215 kilometres will also remain unchanged.

The Railways said these categories were protected to ensure affordability for regular and lower-income travellers.

Revenue impact and rising costs

Indian Railways expects to earn around Rs 600 crore during the current financial year from the revised fare structure.

The Railways noted that operational costs have risen sharply in recent years. Manpower costs have increased to Rs 1.15 lakh crore, while pension expenses now stand at Rs 60,000 crore. The total cost of operations has reached Rs 2.63 lakh crore in 2024–25.

Officials said the expansion of the rail network and efforts to improve safety have required higher staffing levels, adding to expenses.

Focus on efficiency and safety

To manage higher costs, the Railways is focusing on increasing cargo loading along with limited passenger fare rationalisation. These measures have helped improve operational efficiency and safety standards.

India has now become the second-largest cargo-carrying railway network in the world, officials said.

The Railways also pointed to the successful operation of over 12,000 additional trains during the recent festival season as evidence of improved planning and efficiency.

Despite the fare revision, Indian Railways said it remains committed to its social role. Efforts will continue to improve efficiency, control costs and ensure safe and affordable travel for passengers across the country.