With the recent hike in diesel prices putting an additional burden of Rs 3,300 crore on Railways, the PSU behemoth is considering to further increase passenger fares or raise freight charges.         

Among various options, Railways is contemplating whether to introduce fuel adjustment component in the fare structure to increase fares in all classes or hike passenger fares by a few paise per km, sources said.         

The ministry, which is in the process of finalising the Rail Budget 2013-14 to be presented on February 26, is likely to raise catering charges in premier trains like Rajdhani, Duronto and Shatabdi, which will be part of the fare.         

Railways is already reeling under deficit of Rs 25,000 crore in the passenger segment. It has hiked passenger fares by 21 per cent from December 22, aiming to mop up Rs 6,600 crore in a year, but the diesel price hike of Rs 10.8 per litre has put additional burden of Rs 3,300 crore annually.