New Delhi, Nov 7 (DHNS): The Indian Railways may increase passenger fare in the coming budget.

According to sources, the ministry is considering a direct increase in the passenger fare as the dynamic fare system introduced in important trains did not help increase revenue on expected lines.

The ministry does not find it logical to increase freight charges, officials said.

“It was anticipated that the flexi-fare system will increase revenue. However, it is not the case; the revenue is going down. A decline in the number of passengers has also been noticed. So, there are suggestions that fares in the passenger segment be increased,” a railway official said.

According to them, the increase across the board may be the best thing to do.

The railways have increased the cost of rail travel by various changes in the fare structure and refund rules. But, it has not been able to reduce the loss incurred in the passenger segment of the railways.

The data on the income and expenditure of the railways during July-September, the second quarter of the financial year, has shown a reduction in freight revenues, despite various measures of freight rationalisation.