The two per cent average passenger fare hike in trains would come in effect from Monday, while in the 1.7 per cent freight hike would be effective from Thursday.
The two per cent average passenger fare hike in trains would come in effect from Monday, while in the 1.7 per cent freight hike would be effective from Thursday. The Monday passenger fare hike would be second this year, as railways on an average had increased it by over 20 per cent in January this year. The Monday passenger fare hike would be on account of the fuel adjustment cost (FAC), which as per the Rail Budget announcement would be effective every six months. On April 1, when the FAC was due for the first time, railways had allowed it only in the case of freight, while absorbing the additional cost for passenger since the hike in it was too recent. The railways hopes to earn an additional revenue of '400 crore in the next six months from the Monday passenger fare hike, while the income from the freight tariff hike would be '750 crore. In addition it this, the railways has also hiked the fare of the Duranto trains at par with Rajdhani and Shatabdi trains. The railways hopes that with the help of the additional revenue it would be able to neutralise the '1200 crore additional cost in the next six months due to increased diesel and electric traction charges.
