New Delhi: A host of financial, regulatory and pricing changes came into effect across the country on Sunday, bringing a mixed bag of relief and pressure for consumers, businesses and commuters. While motorists and air travellers are expected to benefit from eased norms and lower fuel costs, households and commercial establishments will feel the pinch due to tax revisions and higher prices.
One of the most immediate impacts has been a sharp increase in cigarette and tobacco prices. Under a revised tax structure notified last year, products such as pan masala, khaini and gutkha now attract a flat 40 per cent Goods and Services Tax, replacing the earlier regime of 28 per cent GST plus compensation cess. Cigarettes have also been brought under a new excise duty system based on stick length, with rates ranging from ₹2.05 to ₹8.50 per stick. Since GST is levied on the excise-inclusive price, retail costs are expected to rise by 15 to 40 per cent. In contrast, bidi users have received some relief, with GST reduced to 18 per cent.
In another major development, Oil Marketing Companies have raised the price of commercial LPG cylinders with effect from February 1. The cost of a 19-kg commercial LPG cylinder has been increased by ₹49, impacting hotels, restaurants and other commercial users. However, domestic consumers have been spared any additional burden, as the price of a 14.2-kg household LPG cylinder remains unchanged at ₹853. The last revision in domestic LPG prices was a ₹50 hike implemented in April 2025.
Motorists, meanwhile, have welcomed the relaxation of Fastag norms. The National Highways Authority of India has scrapped the mandatory Know Your Vehicle verification process for Fastag users. From now on, owners of new and existing private vehicles will not be required to undergo routine KYV checks if their Fastag is valid. Officials clarified that KYV verification will be conducted only on a need basis, such as in cases involving complaints of misuse or incorrect tag issuance.
Property transactions have also seen a regulatory shift in Uttar Pradesh and Karnataka, where Aadhaar authentication has been made mandatory for property registration. Buyers, sellers and witnesses will now have to undergo biometric verification at sub-registrar offices. The move aims to curb benami transactions and property fraud and is part of the Centre’s broader “One Nation, One Registration” initiative, which is expected to be rolled out nationwide in the future.
There was some positive news for air travellers as well, with aviation turbine fuel prices cut by around ₹1,000 per kilolitre. In Delhi, ATF rates have dropped to ₹91,393.39 per kilolitre, a reduction that could help airlines lower operational costs and potentially ease airfares.
Borrowers are also keeping a close watch on the Reserve Bank of India’s Monetary Policy Committee meeting scheduled from February 4 to 6. Market analysts are hopeful of a 25-basis-point cut in the repo rate, which could bring it down to 5 per cent and translate into lower EMIs, following a rate cut announced in December.
