LAHORE, May 8: Pakistan Railways has increased passenger fares by 10 per cent from May 9 (today) and freight charges by 15 per cent from May 16 to offset the impact of increase in fuel prices, says a handout.

The annual impact on expenditure due to increase in fuel prices during the current financial year has been estimated at Rs2.5 billion and the recent surge in fares will hardly cover this burden.

Earlier the passenger fares had been increased in December 2004 by five per cent while in May 2006 fuel adjustment charges were revised by Rs10 for short journey up to Rs30 for long journey.