How Are Train Fares Determined? Indian Railways Calls Pricing Formula a ‘Trade Secret’

New Delhi: Ever wondered how Indian Railways sets train fares? The answer, according to the railways, is a closely guarded trade secret. The railways recently cited this reasoning while responding to a Right to Information (RTI) request, which sought detailed information about fare calculations for different classes of passenger trains.

The Central Information Commission (CIC) upheld the railways’ position and dismissed the petition. The applicant had requested information on how base fares are calculated, the factors influencing dynamic pricing, and how timing or seasonal changes affect ticket costs. This online petition had been filed on January 25, 2024.

Railway’s Stand
The railways clarified that fares vary across classes based on the facilities provided. According to the Central Public Information Officer (CPIO) of the Railway Board, “The methodology for classifying and determining fares for different train classes falls under trade secrets/intellectual property and its disclosure is not considered appropriate in the public interest.”

The CPIO also cited Section 8(i)(d) of the RTI Act, which exempts disclosure of sensitive information, including national security, trade secrets, and personal privacy. The CIC has consistently recognized that such commercial methodologies are protected under the law.

Public Information Already Provided
The railways emphasized that as a commercial utility, it operates under government oversight while fulfilling various social obligations. The CPIO confirmed that all information that could be shared publicly—including general principles of fare policies—had already been provided.

During the hearing, considering the absence of the appellant and the completeness of the railway’s response, CIC Commissioner Swagat Das noted that no further intervention was required and the appeal was closed.

Bottom Line: While passengers can access general fare principles, the exact calculation formula of train tickets remains confidential, safeguarded as a commercial trade secret by Indian Railways.