Dineş Trivedi, Minister of Rail Transport in India, resigned because his party protested the passenger hikes.
Passenger hikes last week caused protests at the group meeting of coalition partner Trinamool Congress Party.
Members of the Trinamool Congress Party asked for hikes to be withdrawn, while Minister Trivedi ignored this request.
7000 trains traveling on public railways in India carry 13 million passengers a day.
During a meeting Wednesday, Minister Trivedi said that the State Railways had a difficult period and increased the train passenger tariffs by 30 rupees (0.006 dollars) per kilometer.
However, a few hours after the announcement of the decision, President of Trinamool Congress Party Mamata Banerjee said they did not approve the price increase and demanded the minister's resignation.
Minister Trivedi stepped back after meeting with Trinamool Congress Party President Banerjee on Sunday evening.
Trinamool said that the Trivedi Party would adhere to the disciplinary rules, saying that he was a minister because of the Congress Party.
Party President Banejee asked Prime Minister Manmohan Singh to dismiss Minister Trivedi and replace Mukul Roy.
Minister Trivedi stated that the 10 had to increase the railways wages because there was not a raise in the years but that the price increase was kept at a minimum considering the citizen on the street.
Railway officials in the last eight years, the price increases in gasoline price increases in the negative impact said.