FASTag Rules, Fuel, Tobacco Prices May Change From February 1 — Here’s What You Can Expect

The announcement of Budget 2026 will bring changes that would directly impact households, commuters, business and daily life of consumers from February 1. Several changes including updated Fastag rules, increased tobacco taxes and fuel prices, are speculated to set into place with the announcement on the Budget.

Finance Minister Nirmala Sitharaman will present the Union Budget in Parliament which marks her ninth consecutive budget.

Important Changes Expected

The use of FASTag by drivers will be one of the immediate administrative relaxations. The National Highways Authority of India (NHAI) will do away with the repetitive Know-Your-Vehicle (KYC) verification requirement for FASTags on February 1. Banks issuing the tag will verify all vehicle details at activation under the new simplified system, doing away with the need for regular KYC checks later. This move is anticipated to ease travel on national highways and lessen inconvenience at toll booths.

Even though the budget announcement at 11 am may cause market volatility, the stock markets (NSE and BSE) will continue to be open for trading on Budget Day, operating during regular hours (9:15 am to 3:30 pm), according to NDTV.

There will also be a number of changes to fuel prices. According to reports, the oil companies are expected to release new LPG cylinder prices for both domestic and commercial markets on February 1 which may have an effect on household spending plans and business activity. Compressed natural gas (CNG), piped natural gas (PNG), and aviation turbine fuel (ATF) prices may also change at the same time, affecting airfares and transportation expenses nationwide.

Tobacco Tax Hike Possible

Customers of tobacco and related products will be especially affected by tax changes. Pan masala, cigarettes, and tobacco products are anticipated to increase in price starting in February as the government raises the GST, excise tax, and health/security levies in an effort to increase revenue and reduce the use of dangerous goods.

Collectively, these measures, which coincide with Budget Day, signal the government's attempt to simplify procedures while modifying taxes and prices in response to budgetary priorities.