Railways says calibrated fare hikes followed 5-year gap, impact kept minimal as Indian Railways defended its decision to revise passenger fares twice during FY 2025-26, stating that the increases were deliberately kept modest – ranging from half paisa to two paise per kilometre – while prioritising affordability for low- and middle-income passengers.
In a written reply to a question in the Parliament, the Ministry of Railways said the calibrated revisions were implemented through two fare rationalisations during FY 2025-26 after a gap of five years.
“Indian Railways has undertaken two rationalizations of passenger fares during the financial year 2025-26 after a gap of 5 years. These revisions have been carried out uniformly and in a calibrated manner across applicable classes,” the Railway Ministry said.
According to the ministry, the first rationalisation took effect from 1 July 2025, in which there was no increase in Second Class Ordinary fares for journeys up to 500 Km, after which fares rose by half paisa per passenger kilometre (PKM).
“There was a marginal increase in fares of Ordinary (Sleeper Class and First-Class) by half paisa per PKM, in Mail Express Non-AC Classes by one paisa per PKM and in AC Classes by 02 paisa per PKM,” the ministry said.
A second revision came into force on 26 December 2025.
Under this round, Second Class Ordinary fares remained unchanged for journeys up to 215 Km, with an increase of one paisa per PKM beyond that distance.
Ordinary classes registered a one paisa per PKM hike, while Mail and Express Non-AC as well as AC classes saw a two paise per PKM increase.
The ministry further indicated that less than half of all passenger trips are expected to witness a marginal rise in fares, reinforcing the limited financial impact of the revisions.
Notably, suburban passengers – among the most fare-sensitive segments of the rail network – along with season ticket holders have seen no fare increase for a decade, underscoring the continued emphasis on affordability within the national transporter’s pricing strategy.
“The increase in fares has been low, ranging from half paisa per km to two paise per km of travel. Keeping the affordability concerns of low and middle income passengers, there has been no increase in fare in the last ten years for Suburban service and season ticket holders,” the ministry said.
“It is estimated that less than half the trips will have a marginal increase in fare,” the ministry said.
