The hike will definitely affect the financial health of IR.
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As per a news report on CNBC yesterday apart from fuel hike govt has imposed a Service tax on specified goods transported by Railways.
An amount of 426 crores will have to be paidby railways for current financial year payable next year.
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15% of IR expenses is on account of purchase of fuel from Oil companies.
Add to this it's idea of running diesel locomotives even in electrified routes
for example
Udyan exp (Mum-SBC) runs on WDP4 right from CST even though route till Pune is electrified.
Similar is the case with Hussainsagar exp, Hyd Express and many other south bound trains as well.