Delhi Alcohol Price Hike: New Excise Policy May Raise Liquor Prices Before Diwali 2026

Plenty of Delhi whisky drinkers know the Gurugram run: a short drive across the border for a bottle of Black Label that costs far less on the other side. The Delhi new excise policy is meant to end that habit, though it may come at a price. According to a report in The Indian Express, the draft is ready and likely to be notified in October, with higher excise duty and retail margins planned. Bottles in the capital could get costlier in the coming months, even as more premium liquor stores open. Check out what the draft could change, from margins and prices to premium shelves and industry reaction.

What The Delhi New Excise Policy 2026 Could Change

A senior Delhi government official told The Indian Express, "The final draft of the new excise policy is ready." The proposal will move to the Delhi Cabinet and Lieutenant Governor Taranjit Singh Sandhu after a new excise commissioner is appointed following Ravi Jha's transfer to Arunachal Pradesh.

"Once the approval comes, the government plans to notify it in October ahead of the peak festival season," the official said. Private liquor retailers are unlikely to return, with more than 700 shops continuing under four government corporations.

Why Delhi Liquor Prices Could Change

One of the biggest proposed shifts concerns how much retailers can earn on each bottle. According to the report, the current limit is Rs 50 per bottle for Indian-made foreign liquor and Rs 100 for foreign liquor. An official said shops "do not keep premium imported liquors that cost above Rs 1,000 due to a fixed margin," which can send buyers to Gurugram and Faridabad. The government is considering removing these fixed limits, alongside an increase in the number of premium liquor stores.

Higher Excise Duty Could Push Up Liquor Prices

The other major change is excise duty. Delhi currently uses different price bands and liquor categories to calculate the tax, with duty on Indian spirits ranging from 30% to 300%, according to the publication. An official told the paper that "if excise duty is increased, the liquor prices will also increase." For consumers, that could mean a higher final price even before any change at the retail counter.

More Premium Liquor Stores In Delhi

The proposed policy could also make Delhi more attractive to shoppers looking for expensive imported spirits. Officials said more premium liquor stores are expected, addressing concerns that fixed margins have made higher-priced bottles less appealing for retailers to stock. The aim is also to upgrade shops and make them more inviting for customers.

What The Liquor Industry Says

Vinod Giri of the Brewers Association of India told The Indian Express, "The question is what margin they will allow under the new policy." He said 5%, 10% or 15% margins are generally seen in the industry and that there should not be an objection to a margin of up to 10%, while a substantially higher figure could raise concerns.

On taxes, he said Delhi has "some headroom" to raise excise duty, but warned that higher duty and margins together could have a "multiplier effect" on retail prices.

The final details will only become clear once the policy is approved and notified. For Delhi's whisky drinkers, the key points to watch are the new retail margin, any increase in excise duty and the promised expansion of premium liquor stores.

Frequently Asked Questions (FAQs)

When is Delhi's new excise policy expected?

The policy is likely to be notified in October, subject to approval.

Will Delhi get more premium liquor stores?

Yes, the proposed policy includes plans to increase premium liquor stores.

Will private liquor shops return to Delhi?

Private players are unlikely to be included under the proposed policy.