Indian Railways has implemented a nationwide passenger fare hike effective from December 26, 2025, to offset rising operational and manpower costs. While short-distance commuters and suburban travelers are shielded from the increase, long-distance journeys in both AC and non-AC classes will now cost more.
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New Fare Structure: Who Pays More?
The revised rates primarily target journeys exceeding 215 kilometers. For ordinary class travel beyond this distance, fares have increased by 1 paisa per km. Meanwhile, passengers in Mail and Express trains—across both non-AC (Sleeper) and all AC classes—will face a uniform hike of 2 paise per km. Specifically, this translates to a modest increase of approximately ₹10 for a 500 km journey. Consequently, daily commuters using suburban services or Monthly Season Tickets (MSTs) will see no change in their travel expenses.
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Why the Railways Hiked Prices
The Ministry of Railways cited a significant surge in operating expenses as the primary reason for this rationalization. In fact, total operational costs for the 2024-25 financial year reached a staggering ₹2.63 lakh crore. With manpower costs rising to ₹1.15 lakh crore and pension liabilities hitting ₹60,000 crore, the government opted for a “calibrated” hike to maintain financial sustainability. This is the second such revision in 2025, following a similar move in July.
Train Fare Hike 2025 – Key Impact Details
| Category of Travel | Distance/Route | Fare Increase |
| Suburban / Local Trains | All Distances | No Change |
| Season Tickets (MST) | All Routes | No Change |
| Ordinary Class | Up to 215 km | No Change |
| Ordinary Class | Beyond 215 km | 1 Paisa per km |
| Mail/Express (Non-AC) | Full Journey | 2 Paise per km |
| AC Classes (All Trains) | Full Journey | 2 Paise per km |
Exemptions and Implementation Rules
Notably, the fare hike only applies to the base passenger fare. Other charges, such as reservation fees, superfast surcharges, and GST, remain unchanged. Furthermore, the new rates apply only to tickets booked on or after December 26, 2025. Tickets purchased before this date will remain valid without any additional payment, even if the actual travel date falls later. Major premium services, including Vande Bharat, Rajdhani, and Shatabdi, are also included in this revision.
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Conclusion
The December 2025 fare hike reflects the government’s shift toward incremental adjustments to support infrastructure modernization. While the per-kilometer increase is small, it is expected to generate an additional ₹600 crore in annual revenue for the national carrier….
Disclaimer: Fare details are based on the official notification from the Ministry of Railways as of December 26, 2025. Actual ticket prices may vary slightly due to distance rounding rules. Please check the official IRCTC website or station counters for exact fare calculations for your specific route.
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