Indian Railways Revises Passenger Fares Again; AC and Express Travel to Cost Slightly More from December 26

In a new move, the Indian Railways has introduced a revised passenger fare turning AC and express train journey a notch more expensive starting December 26, 2025. Confirmed by the Railway Ministry, the decision taken on Sunday comes only a few months after the last recalibration in fares which was in July. The recent uptick is expected to strengthen the national transporter's revenue without causing a distress on short-distance or suburban commuters.

The revised structure introduces a hike of 1 paise per kilometre for ordinary class travel beyond 215 kilometres. For non-AC classes of mail and express trains, as well as AC classes across all trains, fares will go up by 2 paise per kilometre. Officials emphasised that the changes are engineered to affect longer journeys while keeping essential and daily travel largely insulated from higher costs.

Who Will Pay More And Who Is Spared

Based on the intimation by the Railway Ministry, passengers using monthly season tickets on suburban routes will not see any change in fares. Similarly, ordinary class journeys up to 215 kilometres on non-suburban trains remain untouched. This exemption is aimed at protecting daily commuters and short-haul travellers, who form a significant portion of Indian Railways’ passenger base.

Officials stated that the fare revision is expected to generate an additional INR 600 crore in revenue for the Railways between December 26, 2025, and March 31, 2026. The ministry described the hike as “little,” underlining that the per-kilometre increase translates into only a small addition to the overall ticket cost, even on long-distance routes.

Revenue Push Amid Rising Costs

The latest revision follows a fare hike implemented in July 2025, which has already fetched around INR 700 crore in additional revenue, according to official figures. Together, these increases signal a cautious but steady attempt by Indian Railways to improve its financial health amid rising operational and maintenance costs.

Railway officials have maintained that periodic fare rationalisation is necessary to sustain services, invest in infrastructure upgrades, and maintain safety standards, particularly as demand for AC and faster express services continues to grow.

What Passengers Should Expect

For most long-distance travellers, the impact will be noticeable but not dramatic. A journey of several hundred kilometres in an AC or express class will cost only a few rupees more than before. However, frequent long-haul passengers may feel the cumulative effect over time.

With the new fares coming into force from December 26, passengers booking tickets for travel beyond that date are advised to check the revised pricing while planning their journeys.

(With inputs from PTI.)

FAQs

1. When will the new Indian Railways fare hike come into effect?
The revised passenger fares will be implemented from December 26, 2025, and will apply to tickets booked for travel on or after this date across applicable train categories.

2. How much has Indian Railways increased train fares in 2025?
Indian Railways has increased fares by 1 paise per kilometre for ordinary class travel beyond 215 km and 2 paise per kilometre for non-AC mail/express and all AC classes.

3. Are suburban and daily commuters affected by the railway fare hike?
No, suburban train fares and monthly season tickets remain unchanged. Ordinary class travel up to 215 kilometres on non-suburban trains is also exempt from the fare increase.

4. Which train classes are impacted by the latest railway fare revision?
The fare hike applies to AC classes across all trains and non-AC classes of mail and express trains, primarily affecting long-distance passengers.

5. Why has Indian Railways revised passenger fares again?
The Railway Ministry stated that the revision is aimed at boosting revenue and managing rising operational costs, while keeping the impact minimal for short-distance and essential travel.

6. How much additional revenue is Indian Railways expected to earn from this hike?
The latest fare revision is expected to generate around Rs 600 crore in additional revenue for Indian Railways between December 26, 2025, and March 31, 2026.