Indian Railways Announces Fare Rationalisation From December 26, 2025 With Focus On Long-Distance Passengers While Protecting Low-Income and Daily Travelers: Here’s The Key Information

Published on December 22, 2025

Indian Railways has announced a fare rationalisation set to take effect from December 26, 2025, aiming to strike a balance between rising operational costs and maintaining affordability for everyday travelers. While passengers opting for long-distance and premium services will see a marginal increase in fares, the focus remains on protecting low-income and daily commuters. Suburban train services and Monthly Season Ticket holders will be exempt from the hike, ensuring that short-distance travel remains accessible for millions. The revision is designed to generate much-needed revenue for ongoing investments in safety and infrastructure, with the goal of improving efficiency across the network while minimizing the financial impact on regular passengers. Here’s the key information you need to understand about this new fare structure.

Indian Railways has announced a revision in passenger fares, set to take effect from December 26, 2025. This marks the first fare adjustment of the year and comes in response to the rising operational costs faced by the railways. The fare hike, described as a rationalization, aims to balance the financial pressures on the railway network while minimizing the impact on everyday travelers.

The Ministry of Railways has made it clear that the revised fare structure has been carefully designed with a focus on affordability for short-distance commuters and low-income passengers. However, travelers opting for long-distance and premium services will see a marginal increase in fares.

What Passengers Can Expect: Who Will Not Be Affected?

In a significant relief for millions of daily commuters, there will be no fare hike for suburban train services or Monthly Season Ticket (MST) holders. These essential services, which cater to the working class, will remain unaffected. Additionally, ordinary-class passengers traveling up to 215 kilometers will continue to pay the same fare, as no change has been announced for these categories. This exemption reflects the Ministry’s commitment to preserving affordability for short-distance travel, particularly for those in low- and middle-income groups who rely heavily on rail services for daily commuting.

Where Fares Will Increase: Details of the Fare Revision

For passengers traveling longer distances or choosing Mail and Express services, ticket prices will see a modest rise. The fare adjustments include:

• Ordinary class (beyond 215 km): The fare will increase by 1 paise per kilometer.
• Mail and Express (non-AC): Passengers traveling on non-AC Mail and Express trains will see a fare increase of 2 paise per kilometer.
• Mail and Express (AC classes): The fare for AC class passengers on Mail and Express trains will also rise by 2 paise per kilometer.

To put the fare hike into perspective, a 500-kilometer non-AC journey will now cost an additional Rs 10. This limited increase underscores the Ministry’s effort to keep the financial impact on passengers as low as possible while ensuring the financial sustainability of the rail network.

A Breakdown of the Fare Changes

• Suburban trains and MSTs: No change.
• Ordinary class (up to 215 km): No change.
• Ordinary class (beyond 215 km): +1 paise per kilometer.
• Mail/Express (non-AC): +2 paise per kilometer.
• Mail/Express (AC): +2 paise per kilometer.
• 500 km non-AC journey: +Rs 10.

Why the Fare Revision Was Necessary

The fare rationalization aims to generate additional revenue, with the Ministry of Railways projecting an estimated Rs 600 crore boost to its finances. A previous fare revision had already raised nearly Rs 700 crore, strengthening the financial position of the railways.

However, with the continued rise in operational costs, the railway network has had to implement these changes to maintain efficiency and safety. For the fiscal year 2024–25, operating expenditures are estimated to reach Rs 2.63 lakh crore, largely driven by investments in safety measures and manpower. The expenditure on manpower alone has surged to nearly Rs 1.15 lakh crore, while the pension bill has risen to Rs 60,000 crore.

Despite the financial pressures, the Ministry has emphasized that these investments are contributing to improved safety standards and operational efficiency across the network, benefiting both passengers and freight services.

Preparing for the Holiday Rush

In anticipation of the Christmas and New Year travel rush, Indian Railways has already introduced 244 additional train trips. More special services are expected to be added in the coming days to accommodate the increase in passenger demand during the festive season. High-demand routes connecting major cities like Delhi, Howrah, and Lucknow will see the operation of special trains designed to handle long-distance travelers heading home or traveling for leisure during the holidays.

The Ministry has made it clear that these additional services will help alleviate pressure on the rail network, ensuring smoother travel experiences for passengers during the peak period.

The Bigger Picture: Railways’ Role in the Economy

Indian Railways has long been a critical pillar of the nation’s transport infrastructure. With its extensive network, it not only serves as the country’s primary passenger transport system but also stands as the world’s second-largest cargo railway operator. Continued reforms in the railway sector have enhanced both freight and passenger services, making rail travel more efficient and reliable.

During peak seasons, such as festivals, Indian Railways has demonstrated its capability to handle large volumes of passengers. In the recent festive season, more than 12,000 special trains were operated to manage the surge in passenger traffic. This ability to adapt and scale services during high-demand periods underscores the resilience and importance of Indian Railways to the country’s transportation landscape.

Looking Ahead: Focus on Efficiency and Cost Control

Moving forward, the Ministry of Railways remains focused on further improving operational efficiency, controlling costs, and implementing reforms to ensure the affordability and accessibility of rail travel for all. While the fare revision is a necessary step in addressing rising costs, the broader objective remains to ensure that the railways continue to serve as a vital mode of transportation for millions of passengers, particularly those in rural and underserved regions.

Indian Railways has announced fare rationalisation from December 26, 2025, focusing on long-distance passengers with minimal impact on low-income and daily commuters to address rising operational costs while maintaining affordability. The adjustments are aimed at generating revenue for safety and infrastructure improvements.

The fare revision announced by Indian Railways represents a balancing act between addressing rising operational costs and maintaining affordability for everyday passengers. While the adjustments may be felt by long-distance and premium travelers, short-distance commuters will continue to benefit from unchanged fares. In addition, the increase in train services for the holiday rush ensures that passengers will have access to reliable and comfortable travel options during the peak season. As the railway system continues to evolve and adapt, its commitment to safety, efficiency, and affordability will remain central to its operations.