<p>Railway Board Chairman Vinay Mittal on Saturday while addressing the National Editors’ Conference said there may be a review of passenger fares in October after assessing the cost of fuel. <br /><br /></p>.<p>“We will calculate the Fuel Adjustment Component (FAC) for six months beginning April 1, 2013. Only after a calculation, we would take a decision on passenger fare,” Mittal said.<br /><br />“The decision will be taken only after a review of the Fuel Adjustment Component. We will calculate even minor changes in cost of the fuel for the review-period,” the chairman said.<br />He also said by then the Rail Tariff Authority (RTA) will also be constituted. Any decision on passenger or freight fares would be taken in consultation with the RTA.<br /><br />The review of FAC for both freight and passenger fares twice a year has already got the approval of Parliament as it was a part of the Rail Budget. Freight charges were even revised on that basis.<br /><br />Meanwhile, railway sources are denying the possibility of a further hike as considerable increase in diesel prices for bulk consumers has already been done, any further increase in the April-October period is unlikely. <br /><br />However, in case of an increase in prices, passenger fares will certainly be reviewed, but officials will also have to take into account the 2014 elections. <br /><br />No government can afford such an increase in the run-up to election.<br /></p>
<p>Railway Board Chairman Vinay Mittal on Saturday while addressing the National Editors’ Conference said there may be a review of passenger fares in October after assessing the cost of fuel. <br /><br /></p>.<p>“We will calculate the Fuel Adjustment Component (FAC) for six months beginning April 1, 2013. Only after a calculation, we would take a decision on passenger fare,” Mittal said.<br /><br />“The decision will be taken only after a review of the Fuel Adjustment Component. We will calculate even minor changes in cost of the fuel for the review-period,” the chairman said.<br />He also said by then the Rail Tariff Authority (RTA) will also be constituted. Any decision on passenger or freight fares would be taken in consultation with the RTA.<br /><br />The review of FAC for both freight and passenger fares twice a year has already got the approval of Parliament as it was a part of the Rail Budget. Freight charges were even revised on that basis.<br /><br />Meanwhile, railway sources are denying the possibility of a further hike as considerable increase in diesel prices for bulk consumers has already been done, any further increase in the April-October period is unlikely. <br /><br />However, in case of an increase in prices, passenger fares will certainly be reviewed, but officials will also have to take into account the 2014 elections. <br /><br />No government can afford such an increase in the run-up to election.<br /></p>
