Railways hikes fare: AC tickets cost ₹10 more per 500km
What's the story
The Indian Railways has announced a revision in its passenger fare structure, effective from December 26, 2025. The new structure will see a marginal increase in fares for long-distance travel while keeping short-distance, suburban, and season ticket passengers unaffected. There will be no change in fares for suburban train services and monthly season tickets under the revised structure, according to a statement by the Railways.
Fare increase
Fare hike details for long-distance journeys
Ordinary Class passengers traveling beyond 215km will see a slight fare increase. They will pay 1 paise per kilometer more, while Mail and Express trains in Non-AC coaches will see a 2 paise per kilometer hike. AC class fares will also be hiked by the same amount. This means that a passenger traveling 500km in a non-AC coach would have to pay around ₹10 extra, according to Railway estimates.
Twitter Post
Fare hike announcement
Indian Railways has rationalised fares effective December 26, 2025, with no hike for suburban services, Monthly Season Tickets, or Ordinary Class travel up to 215 km pic.twitter.com/CGslhcE4TR
— IANS (@ians_india) December 21, 2025
Revenue boost
Fare revision aims to generate additional revenue
The fare rationalization is expected to generate around ₹600 crore in additional revenue for Indian Railways during the year. Officials said this move comes amid a major expansion of the Railways' network and operations over the last decade, with an emphasis on improving safety and operational efficiency. To support these higher levels of operation, Indian Railways has increased manpower, leading to a sharp rise in costs.
Cost increase
Rising operational costs and focus on efficiency
Manpower expenditure has increased to ₹1.15 lakh crore, while pension costs have risen to ₹60,000 crore. Officials stated that the total cost of railway operations has gone up to ₹2.63 lakh crore in 2024-25. To meet these rising expenses, Indian Railways is focusing on higher cargo loading along with limited rationalization of passenger fares. India is now the second-largest cargo-carrying railway system in the world, thanks to improvements in safety and efficiency.
Efficiency gains
Indian Railways highlights operational efficiency improvements
The Railways highlighted its successful mobilization of over 12,000 trains during the recent festive season as an example of improved operational efficiency. They said efforts would continue to enhance efficiency while containing costs and meeting social obligations. The fare revision is aimed at balancing operational costs while keeping rail travel largely affordable for short-distance commuters and daily passengers.