The Railways said the fare revision is aimed at offsetting rising operational, manpower and pension costs. This is the second fare fare hike this year, following an earlier increase in July after a gap of nearly three years.
BY PC Bureau
December 21, 2025: Train travel is set to become more expensive as Indian Railways implements a fare hike effective December 26. While suburban train fares remain unchanged, passengers travelling longer distances will have to pay more under the revised rates.
Under the revised structure, general class fares for journeys up to 215 kilometres will remain unchanged. For distances beyond that, passengers will pay an additional 1 paise per kilometre. Fares for non-air-conditioned Mail and Express trains will increase by 2 paise per kilometre, while air-conditioned class fares will also see a hike of 2 paise per kilometre.
The Railways has announced a new fare structure effective December 26, 2025. There will be no fare increase for Ordinary Class journeys under 215 km. For journeys beyond 215 km, there will be a fare hike of 1 paise per km.@AshwiniVaishnaw @RailMinIndia #IndianRailways… pic.twitter.com/aLQN0StojP
— DD News (@DDNewslive) December 21, 2025
This translates into an additional cost of Rs 10 for a 500-kilometre journey in a non-AC coach.
The Railways said the increase reflects a sharp rise in operational expenses, driven by network expansion and higher staffing requirements. The fare revision is expected to generate about Rs 600 crore in additional annual revenue.
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Manpower costs have climbed to Rs 1.15 lakh crore, with pension liabilities touching Rs 60,000 crore. Total operating expenditure for the 2024–25 financial year has risen to Rs 2.63 lakh crore, the Railways said.
To manage these costs, the Railways is focusing on boosting freight movement alongside periodic passenger fare revisions.
The last fare increase was implemented in July, when non-AC fares on Mail and Express trains were raised by 1 paise per kilometre and AC fares by 2 paise per kilometre. Prior to that, train fares were revised on January 1, 2020, marking the first hike in several years.
