The increase in the rates of High Speed Diesel (HSD) oil in January 2013 has added Rs. 3,300 crore to the annual fuel bill of Railways.
With a view to rationally insulate Railways’ finances, particularly in the context of deregulation of HSD oil, a dynamic pricing mechanism has been introduced for adjusting tariffs in sync with movements in fuel cost.
The Ministry of Railways are targeting economy in fuel bill by improving fuel efficiency, better management and utilizing state-of-the-art technologies like guidance for optimized locomotive driving technique, provision of auxiliary power unit, electronic fuel injection etc., introduction of alternate fuel like bio-diesel, CNG etc.
