The Ministry of Railways announced on Sunday, December 21, 2025, new passenger fare changes effective from December 26. The new rates aim to manage rising operational costs but keep fares affordable for passengers. There will be no fare rise for suburban trains and Monthly Season Ticket holders, giving relief to daily commuters. In ordinary class, trips up to 215 kilometres remain priced the same. For longer journeys beyond 215 km in ordinary class, fares will increase by just one paise per kilometre. For Mail and Express non-AC categories, fares will rise by 2 paise per kilometre. AC classes will also see a uniform 2 paise per kilometre increase. The Ministry stressed that these hikes will have a limited financial impact. For example, a 500-kilometre non-AC trip will cost only ₹10 more under the new structure. The fare rationalisation is expected to generate ₹600 crore more revenue. The Railways also highlighted growing costs in manpower and pensions, with manpower expenses rising to nearly ₹1,15,000 crore and pension bills hitting ₹60,000 crore. The total operating cost estimate for 2024-25 stands at ₹2,63,000 crore. The Ministry credited these investments for improved safety and efficiency. Indian Railways is now the world's second-largest cargo railway system. During the recent festival season, over 12,000 special trains operated smoothly to meet passenger demand. Going forward, Indian Railways will focus on efficiency, controlling costs, and operational reforms to provide affordable and accessible transport to the public.