Indian Railway Fare Hike: Passengers traveling by train from 1 July 2025 may have to pay a little more rent. The Railway Ministry has decided to increase a slight increase in the fares of AC class, sleeper class and second class in long distance trains. This increase is being done after about 5 years. Railways say that this will increase revenue, but the increase in fares has been kept very low so that the common man does not fall too much burden. However, there will be no effect on the passengers traveling in these trains.
Which class fare will increase?
AC Class: Increase by 2 paise per kilometer.
Sleeper class (in mail/express trains): 1 paisa per kilometer.
Second Class (General): 0.5 paise per kilometer on a journey of just 500 km.
This change will be applicable across the country. The fare will increase only in long distance trains. This increase is happening for the first time since 2020 and railway officials claim that this is the lowest growth ever.
Which passengers will not be affected?
Local/suburban train traveling by train.
Monthly Season Ticket (MST) Holders. That is, people traveling daily will not have any significant impact.
The fare for these passengers will remain the same as before. The government has ensured that millions of people traveling daily do not have any effect.
Why was the fare increased now?
In December 2024, the Standing Committee of Parliament suggested to the Ministry of Railways that the fare of AC class should be according to the cost of operation. According to the data, local trains compensate the railways for only 30% cost. 39% from non-AC trains and only 3.5% from AC trains. Therefore, increased fare will help the railways to withdraw its cost.
How much will be the benefit?
Railways hope that the financial year 2025-26 will earn around Rs 92,800 crore from passengers. With the increase in fare, an additional revenue of Rs 700 crore is estimated to be received in the remaining months of this year. Although some passengers may feel a little impact due to increase in fare, this increase is very low and had long stopped. Railways say that this step will help in improving services and structures, which will benefit passengers in future.
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