Even if Railway Minister Suresh Prabhu gave relief to passengers by announcing no increase in fares in the budget, people travelling in first class in local trains, as well as AC coaches in long-distance trains may still not be spared. The increase in service tax, from 12.36 per cent to 14 per cent announced by Finance Minister Arun Jaitley, might result in a possible fare hike for them.

Officials said that the argument for the hike is that commuters travelling in first class compartment can pay the excess amount. Pic for representation