As a response to the significant surge in petrol and diesel prices, Pakistan Railways has announced a second train fare increase in September, raising fares by 5%. This fare adjustment is set to take effect on September 19, providing the railway with additional revenue.
The fare hike applies to all types of trains, including shuttles, passenger, express, and freight services. Notably, shuttle and passenger trains covering distances up to 250 kilometers will remain unaffected by this increase.
This move follows a series of fare increases over the past 1.5 months, cumulatively amounting to a 20% rise in train fares. The railway ministry implemented previous fare hikes on August 10 (10% increase) and September 2, reflecting the railway’s efforts to cope with rising operational costs, including fuel expenses.
The decision to raise fares coincides with the recent increase in petroleum product prices by the caretaker government, which raised petrol and diesel prices significantly. Petrol prices surged by Rs26.2 per litre, reaching a new price of Rs331.38 per litre, while diesel prices increased by Rs17.34 per litre, reaching Rs329.18 per litre.
This frequent and substantial rise in fuel prices has raised concerns among economic experts regarding its potential impact on inflation, as it has the potential to increase transportation and production costs, which could subsequently affect the prices of goods and services across the country.
