Indian Railways increase passenger fares by 14.2% and freight rates by 6.5%, effective June 25, 2014

Indian Govt has announced steep hike in rail passenger and freight fares ahead of new budget. From June 25, rail passenger fares will rise by 14.2 per cent, while the freight rates will go up by 6.5 per cent.

This hike will apply to tickets purchased in advance for journeys commencing on or after that date. The difference in fare for such advance tickets will be collected by ticket examiners during the journey. Rail season tickets for local trains in major towns like mumbai may increase by even 100%.

The Indian Railways transport an estimated 25 million people every day. The last fare hike was in October 2013. The hikes will help the Railways mop up an additional Rs 8,000 crore this fiscal.

However, the increase in passenger fares would raise consumer price inflation by around 10 basis points, while the freight hike would impact wholesale price inflation because the cost of transporting key goods like steel would rise.