What a Mumbaikar needs to know about the #RailFareHike?

Be prepared to spend a handsome amount on your railway tickets. The Narendra Modi government released one its first harsh economic reforms, by increasing the railway fare. 

There will be a national price hike of 14.2 % in passenger rail and 6.5% in freight rail. There will be a 10% increase in the fare of all classes of all categories of trains including passenger trains. Fuel Adjustment Component (FAC) and Service tax will be applicable. There shall be no change in charges for reservation fee, supercharge etc. 

This is a measure being taken to generate a greater revenue in the railway sector, as it is believed to be one of the areas where the government is suffering from major losses. While everyone is talking about the harsh price increases, here is a better understanding for what this means for your Mumbai Local journey.

Here are 5 things you need to know: 

What does 14.2% increase really mean?
While the number that is being spread around is 14.2% increase, this value is simply the increase in the price of long distance travel. This means that we will see the 14.2 % increase evidently while traveling from Mumbai to Goa, or Mumbai to Gujarat. However the calculation for our local travel is much different. 

How will it be calculated now?
The Mumbai local train journey passes are calculated on the bases of number of journeys. Earlier a one month pass was made by calculating the price of approximately 15 single journeys, however now it will be calculated by keeping 30 single journeys in mind. Thus the increase in prices will be twice as much, far greater than “14.2%”! Also the First class pass will be made to cost four times more than the second class pass.

Here is a glimpse of what your new fares will look like:

From when will the prices be applicable?
The new prices will be applicable with effect from June 25, 2014. This means that till 12:00 am, on June 24 the old prices will continue to apply. 

If a pass is made prior to June 25 does the passenger have to pay the difference?
While legally the railway officials have the right to charge the difference in fare once the prices raise, this will not be practiced. Considering the volume of people that travel by the Mumbai local trains, it will be impossible for the officials to calculate and demand the new change in price. Thus, if you have bought a pass prior to June 24 midnight, then you get your pass at the old prices, and the new prices will only be applicable after it expires. 

While traveling long distance, will the price difference have to be paid?
Unfortunately, the new prices are applicable to long distance tickets despite their purchase prior to the change in price. Thus, even if you have booked your tickets months in advance, the price on the day of your travel will apply. The ticket checker has the right to demand the difference in return for a receipt. 

The prices are rumoured not to be further changed in the comign budget of 2014-2015. So run to your nearest station and try and get a pass done before midnight!

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