Indian Railways Train Fares to Rise from Dec 26 for Longer Journeys

Indian Railways will implement a revised fare structure from December 26, 2025, introducing a nominal increase for longer journeys. The Ministry of Railways announced the rationalisation to balance rising operational costs while minimising the impact on passengers. Fares for trips exceeding 215 kilometres will see a slight rise, while short-distance travel remains unaffected.

Passengers in Ordinary Class travelling beyond 215 km will pay an additional 1 paisa per kilometre, while Mail and Express non-AC and AC classes will see a 2 paise per kilometre increase. For example, a 500-kilometre non-AC journey will cost only ₹10 extra under the new structure, according to the Ministry. This revision is expected to generate around ₹600 crore in additional revenue.

Suburban services and Monthly Season Ticket (MST) holders will not face any fare increase, providing relief to daily commuters. Likewise, ordinary-class passengers travelling up to 215 km will continue to pay existing rates, ensuring minimal inconvenience for short-distance travellers.

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The Ministry highlighted that the fare hike coincides with ongoing efforts to strengthen safety and operational efficiency. Manpower-related expenditure is projected to rise to nearly ₹1,15,000 crore, while the pension bill has touched ₹60,000 crore. The total operating cost of Indian Railways for 2024-25 is estimated at ₹2,63,000 crore.

Indian Railways has previously increased fares in January 2020 and July 2025, and the current hike continues the trend of incremental adjustments. Despite the increase, the Ministry emphasised that the financial burden on passengers remains limited while supporting long-term improvements in safety, service, and infrastructure.

The Ministry reaffirmed its commitment to making rail transport efficient, affordable, and accessible. The Railways, now the world’s second-largest cargo operator, has successfully managed high passenger demand, including operating over 12,000 special trains during recent festival seasons, reflecting its focus on operational excellence and public service.

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