Ministry of Railways Undertakes Fuel Adjustement Component (FAC) Linked Revision in Passenger Fare and Freight Tariff

The Revised Passenger Fare will Come into Effect from 7th October 2013 while Revised Freight Tarrif will Come into Effect from 10th October 2013 

In the Railway Budget for 2013-14, the proposal to implement Fuel Adjustment Component (FAC)-linked tariff revision, bi-annually in sync with movement in fuel costs in either direction was introduced. While the proposal was implemented in the case of freight tariffs w.e.f. 01.04.2013, passenger fares were kept out of the purview of FAC-linked revision at that time, primarily on grounds that these had been revised upwards after a hiatus of ten years only recently, i.e. w.e.f. 22^ndJan’2013. 

In the present exercise, the escalation recorded in fuel cost during the period February 2013 to July 2013 only has been factored in:

o        High Speed Diesel (HSD): + 7.3%

o        Electricity (Railway Traction): 15.5%

The Ministry of Railways has now decided to revise passenger fare and freight tariffs linking it with Fuel Adjustment Component (FAC). The revised passenger fare will be effective from the midnight of 6^TH October and 7^th October 2013 (i.e0000 hours of  7^th October 2013). The revised freight tariff will be effective from the midnight of 9^thOctober and 10^th October 2013 (i.e. 0000 hours of 10^th October 2013)

The assessed impact of FAC-linked revision is as under:

1.      Passenger Fares:

Ø      No increase in either Second Class Ordinary (Suburban) or Second Class MST fares; 

Ø      Fares for Second Class Ordinary (Non-Suburban) would go up by a maximum of ₹ 5/- in select distance slabs, while in the other distance slabs there would be no change in existing fares.

Ø      In all other classes, the revised fares would be only about 2% higher than the existing fare.

Ø      Anticipated incremental earning would be around ₹ 450/- crore in the balance six months of the financial year.

2.      Freight Tariffs:

Ø      An across-the-board increase of about 1.7% in freight rates.

Ø      Anticipated incremental earning would be around ₹ 700/- crores in the balance six months of this financial year.

Some sample fare tables are enclosed with this press release.

The detailed revised passenger fare table is available on the website of Indian Railways, namely www.indianrailwsays.gov.in.

Click here to see Annexure I

Click here to see Annexure II

Source : PIB Release, 4 October, 2013