As February 2026 nears, Indians are bracing not only for the Union Budget, scheduled on February 1, but also for a slate of important rule and price changes that will directly influence household budgets, travel costs, fuel spending and more.Â
These shifts come at the very start of the month, meaning many of them kick in the same day the budget is presented in Parliament by Finance Minister Nirmala Sitharaman. Citizens and businesses alike are watching closely to understand how these updates will affect their finances and routines.Â
Key Changes Effective From February 1, 2026
Tobacco, Cigarettes & Pan Masala Price
A major impact for consumers will be the higher tax regime on tobacco products, cigarettes and pan masala that comes into effect on February 1.
Under the updated tax structure, many tobacco‑related products, including cigarettes and pan masala, are placed in a higher GST slab, with some attracting up to 40% GST. Additional duties such as excise and health/security cess will also apply, especially on pan masala.
As a result, smokers and users of these items are likely to see a noticeable price increase, and some retailers may even adjust stock levels ahead of the change.
FASTag Users Get Easier Toll Access With KYC Removal
One of the biggest changes from February 1, 2026, is the abolition of the mandatory Know Your Vehicle (KYV) process for new FASTag issuances on private vehicles like cars, jeeps and vans.
Under the new rules, banks issuing FASTags will handle vehicle authentication using the VAHAN database before the tag is activated, so users won’t have to submit extra documents or complete post‑activation checks at toll plazas.
This change aims to simplify toll payments and reduce hassles for everyday commuters. However, KYV may still be required if fraud is suspected or if a tag appears linked to the wrong vehicle.
LPG Cylinder Price Revision Could Hit Kitchen Budgets
Across the country, households depend on LPG cylinders as an essential cooking fuel. As is customary at the start of each month, oil marketing companies will release new LPG cylinder prices on February 1.
While commercial 19‑kg cylinder rates have seen fluctuations recently, markets and consumers are now watching closely to see if domestic cylinder prices also rise or fall, as this will directly affect monthly kitchen expenses.
CNG, PNG & Aviation Fuel Rates Also Due for Revision
Not just LPG, but prices of other fuels like CNG (compressed natural gas), PNG (piped natural gas) and aviation turbine fuel (ATF) are also expected to be updated from February 1.
If the cost of CNG and PNG goes up, travel and household energy expenses may climb. Similarly, changes in aviation fuel prices can lead to fluctuations in airfares, affecting both business and leisure travel costs.
Stock Markets Stay Open on Budget Day
Traditionally, Indian stock exchanges sometimes close on significant public occasions. However, this year, both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) will remain open on February 1, trading from 9:15 am to 3:30 pm, despite the Budget speech scheduled at 11 am.
Markets could see volatility as the Budget announcements roll out live, making it essential for investors to watch movements carefully.
What Does This Mean for Your Wallet?
Combined, these changes highlight how February 1 is shaping up to be a financially significant day for ordinary citizens across India. From the way you pay tolls on highways to how much you spend on fuel, gas, tobacco or travel, a smarter household budget approach will help manage the transition smoothly.
Consumers should track the LPG and fuel price notifications, reconsider tobacco product purchases, and plan for potential higher everyday costs. At the same time, the FASTag KYC removal could be a relief for drivers tired of repeated verification hassles.
With the Union Budget just one part of the larger picture, staying informed about these rule changes will help families, commuters and investors make better decisions throughout the new month.
