New Delhi, Jun 21 (IANS): The Railways Ministry Friday evening issued a clarification stating that the fare and freight hike announced was inclusive of fuel adjustment component, which is done every six months.
“The Order of Fare and Freight revision issued by the Ministry of Railways today, as finalised by the previous Government, is only 10 percent hike in Passenger Fare and 5 percent hike in Freight Rates.
“The figure of 14.2 percent hike in Passenger Fare and 6.5 percent hike in Freight Rates is inclusive of the Fuel Adjustment Component (FAC) (4.2 percent 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,” the official statement said.