As January 2026 comes to an end, several important rule changes are set to take effect from February 1, 2026, directly impacting household budgets, daily commuting, fuel costs, and taxation. From FASTag regulations and fuel prices to cigarettes becoming more expensive and the presentation of the Union Budget, February is expected to bring significant financial shifts for common citizens.

With the Union Budget being tabled on the very first day of the month, public attention remains firmly fixed on policy announcements that could shape expenses, savings, and investments in the coming year.

Union Budget 2026: Key Expectations for Taxpayers

Finance Minister Nirmala Sitharaman will present her ninth consecutive Union Budget on February 1, 2026. Currently, under the new tax regime, annual income up to ₹12.75 lakh is exempt from income tax. However, taxpayers are keenly watching whether the government will further simplify tax slabs or clarify the future of the old tax regime.

The budget outcome is expected to help individuals decide which tax structure works best for them, especially amid rising inflation and evolving salary structures.

FASTag Rules Simplified from February 1

One of the most consumer-friendly changes comes in the form of updated FASTag regulations. The National Highways Authority of India (NHAI) has announced that vehicle owners will no longer need to complete separate KYC formalities for FASTag from February 1.

Going forward, the responsibility of verifying vehicle-related details will rest entirely with the banks issuing FASTags. This move is expected to reduce paperwork, speed up onboarding, and offer major relief to millions of highway commuters across the country.

Stock Markets to Remain Open on Budget Day

Unlike past years, Indian stock markets will remain open on February 1, even as the Union Budget is presented. Trading on NSE and BSE will take place during normal hours, from 9:15 AM to 3:30 PM.

Since the budget speech is scheduled for 11:00 AM, investors should brace for heightened volatility during intraday trading, especially in sectors sensitive to government spending and policy reforms.

LPG, CNG, and PNG Prices Under Watch

February 1 may also bring changes in LPG cylinder prices, as oil marketing companies are expected to revise domestic and commercial gas rates. In January, the price of 19-kg commercial LPG cylinders was reduced by ₹14.50, offering temporary relief to businesses.

Apart from LPG, prices of CNG, PNG, and aviation fuel could also be revised, which may directly influence household cooking costs, travel expenses, and public transport fares.

Cigarettes Set to Become More Expensive

Smokers are likely to feel a significant pinch from February onward. The government is preparing to increase GST, excise duty, and cess on cigarettes. Additional levies linked to public health and national security may also be introduced.

While tax rates on pan masala are expected to change, officials have indicated that retail prices may remain stable for now. However, cigarettes are almost certain to see a noticeable price hike.

Direct Impact on Household Finances

The combined effect of these changes—ranging from fuel costs and taxation to everyday goods—will have a direct impact on monthly budgets. While measures like simplified FASTag rules bring relief, higher cigarette prices and possible fuel revisions could increase expenses.

Financial experts advise individuals to reassess their budgeting, savings, and investment strategies in light of these developments. Being informed and prepared will help households adapt better to the evolving economic landscape.

What Lies Ahead

February 2026 marks a critical period for policy-driven financial changes. With the Union Budget, regulatory updates, and price revisions all converging on a single day, citizens should stay alert and proactive in managing their finances.

Understanding these changes in advance can make a meaningful difference in navigating expenses and planning for the year ahead.