Indian Railways: Train Ticket Prices to Increase from December 26: Long-Distance Travel to Become Costlier

Indian Railways has made a significant announcement regarding passenger fares, which will see changes implemented from December 26, 2025. The railway authorities have termed this adjustment as 'fare rationalisation' rather than a direct 'fare hike'. This change is primarily aimed at long-distance travelers, while daily commuters and. Those undertaking short journeys will remain unaffected by the new pricing structure.

Long-Distance Journeys to Become More Expensive

Under the new regulations issued by the railway, long-distance train travel will now incur slightly higher costs, while for ordinary class travel exceeding 215 kilometers, passengers will be required to pay an additional 1 paisa per kilometer. Similarly, for those traveling in non-AC classes of Mail or. Express trains, the increase will be 2 paise per kilometer. Passengers opting for AC class travel will also face an increase of 2 paise per kilometer, while this adjustment is a strategic move by the railway to manage its escalating operational expenses and ensure the sustainability of its vast network.

Illustrative Example of Fare Increase

To better understand the impact of this change, consider an example: if a passenger travels 500 kilometers in. A non-AC coach, the new rules will result in an increase of only 10 rupees in their ticket price. While this amount may seem small on an individual basis, when multiplied by the millions of passengers who travel daily, it contributes Importantly to the railway's revenue, while indian Railways anticipates that this modest adjustment will generate approximately 600 crore rupees in additional revenue this fiscal year, which will be crucial for funding infrastructure improvements and enhancing passenger services.

Relief for Daily Commuters and Short-Distance Travelers

Indian Railways has explicitly stated that there will be no increase in fares for suburban trains or Monthly Season Tickets (MSTs). Plus, passengers traveling up to 215 kilometers in ordinary class will also be exempt from this fare rationalisation. This ensures that the common person, who relies on trains for shorter commutes, won't face any additional financial burden. This measure underscores the railway's commitment to keeping its services accessible and affordable for all segments of society, particularly those who depend on it for their daily travel needs.

Reasons Behind the Fare Adjustment

The primary reason behind this fare adjustment is the continuously rising expenditure of the railway. Over the past decade, Indian Railways has Notably expanded its network and operations, leading to a substantial increase in manpower and associated costs, while according to available data, the railway's manpower expenditure has surged to 1,15,000 crore rupees, while the pension burden has reached 60,000 crore rupees. The total operating cost for the financial year 2024-25 has exceeded 2,63,000 crore rupees. To manage these substantial expenses and to further enhance passenger safety and services, the railway has been compelled to explore new revenue streams, while consequently, Indian Railways is also focusing on increasing cargo loading and has implemented this minor 'adjustment' in passenger fares to maintain financial stability and continue providing improved services across its extensive network.