Sunday, June 22, 2014

Railways’ Clarification on Revision of Passenger Fare & Freight Rate

In connection with the Revision of Passenger Fare and Freight Rates, the Ministry of Railways would like to clarify the following: 

The Order of Fare and Freight revision issued by the Ministry of Railways today, as finalised by the previous Government, is only 10 % hike in Passenger Fare and 5 % hike in Freight Rates. 

The figure of 14.2 % hike in Passenger Fare and 6.5 % hike in Freight Rates is inclusive of the Fuel Adjustment Component (FAC) (4.2 % for Passenger Fare and 1.5 % Approx. for Freight Rates) which is done once in six months routinely, depending upon the fluctuations in Oil Prices similar to retail prices of Diesel and Petrol at Petrol Bunks. The additional burden due to oil Prices fluctuation, will get reviewed if the price of Oil decreases. It is pertinent to note that the Fuel Adjustment Component (FAC) linked revision has already been implemented twice earlier by the previous government and was last done in October 2013.

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