Railways hikes passenger fares for 2nd time in FY26; move may add ₹600 cr

'Modest' fare hike to have minimal impact on passengers while adding ₹600 crore to railway revenues, officials say, as costs rise and freight rates remain unchanged

For the second time in 2025-26, the Ministry of Railways has raised passenger fares, a move officials described as “modest” and calibrated to put minimal burden on travellers. 

The latest increase is expected to generate an additional ₹600 crore in revenue during the current financial year, the ministry said. At prevailing passenger volumes, the annualised revenue gain would have been close to ₹2,400 crore. 

Effective from December 26, fares for air-conditioned classes will increase by 2 paise per kilometre (km). Non-air-conditioned travel on mail and express trains will also cost 2 paise more per km.

 

Non-air-conditioned travel on ordinary trains