Both passenger and freight segments of Indian Railways may become dearer soon as the government is mulling a plan to implement fuel adjustment component (FAC).

On Thursday, Railway Minister Mallikarjun Kharge said he couldn't rule out the chances of a rise in fares as FAC should be implemented from the start of October.

Speaking on the topic, he said, "Fuel Adjustment Component (FAC) was announced in the budget and as per the budget proposal, FAC should have been implemented from October 1. A decision will be taken shortly."

The potential increase in fares comes close on the heels of a steep increase of 15 per cent in freight tariffs.

As per the government's budget proposal, the fuel component is separated from tariff as fuel adjustment component (FAC). The government-owned transporter is now expected to revise passenger as well as freight tariffs twice a year.

However, announcing an increase in railway fares will not be an easy task as it could affect Congress' vote bank ahead of upcoming Assembly elections in five states. Two of the five poll-bound states, viz. Delhi and Rajasthan, are currently being ruled by Congress.