2 per cent rail passenger fare hike comes into effect

Travelling by train became costlier from today as the new fare structure came into effect following the latest round of revision.
Facing an additional burden of about Rs 1,200 crore due to increased diesel and electricity costs, Railways made an upward revision of passenger and freight tariffs, linking it with the fuel adjustment component (FAC).
The decision to link fuel prices with the fare structure was announced in Rail Budget, 2012-13.
According to the decision, passenger fares were hiked, for a second time in a year, by 2 per cent from today. A similar hike, of about 1.7 per cent, would be effected for freight services from October 10.

Railways had earlier hike passenger fares by about 15 per cent on January 22 this year.
However, there was no increase in second class-tickets on suburban trains and on monthly season tickets.
"The decision to revise tariff was taken due to increased costs of inputs in the last six months. There has been an increase of 7.3 per cent in fuel charges while electricity costs have gone up by 15.5 per cent," said a senior Railways Ministry official.
The hike in passenger fares would help Railways mop up about Rs 450 crore in the last six months of the current fiscal, the official added.