Fare hike inclusive of Fuel Adjustment Component: Railways


New Delhi: Faced with criticism of effecting a steep hike, the Railways clarified late in the evening that the increase was only 10 per cent in passenger fare and 5 per cent in freight charges.

It also insisted the hike was “as finalised by the previous government”, and promised to “review” the additional burden due to oil price fluctuation if the the price of oil decreases.

The ministry said in a press release that the figure of 14.2 per cent hike in passenger fare and 6.5 per cent hike in freight rates is inclusive of the Fuel Adjustment Component (FAC).

It said the FAC is 4.2 per cent for passenger fare and approximately 1.5 per cent for freight charges, which is done once in six months “routinely”, depending upon 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 FAC linked revision has already been implemented twice earlier by the previous government and was last done in October 2013,” the ministry said in the release.


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