Liquor prices in Delhi are expected to rise in the next few months as the Delhi government will launch a new excise policy as it gears up for the festive season. Such a policy is expected to increase excise duty and will also change the retail margin structure for liquor sellers.
The development was reported on September 28, 2026, and The Indian Express reported that the final draft of the policy is ready and could be notified in October after the required approvals.
Why could liquor cost more?
One of the more drastic changes is an increase in excise duty. Excise duty is, in fact, a tax the government has imposed on alcoholic beverages and is a major part of the final price paid by consumers.
According to officials from The Indian Express, the duty is currently different for liquor type and wholesale price slabs. Any increase in these slabs could increase the tax component and hence affect retail prices.
The Brewers Association of India also said that an increase in excise duty could have a wider effect because it can raise the base price on which other retail calculations are made.
Retail margins may also change
The policy is also expected to change the manner in which retail margins are calculated.
Currently, retail margins are fixed on a per-bottle basis. The Indian Express reported that the current cap is ₹50 for Indian Made Foreign Liquor and ₹100 for foreign liquor.
The fixed margins can make it difficult for Delhi retailers to stock expensive imported brands as the margin remains limited regardless of the bottle's price, government officials said.
Premium imported liquor could become more available
The proposed removal or restructuring of fixed margins could have another effect: more Delhi shops may find it commercially viable to stock premium imported liquor.
According to The Indian Express, customers sometimes travel to neighbouring cities like Gurugram and Faridabad for premium brands because retailers there operate without the same fixed-margin structure.
The proposed changes could therefore alter the availability and pricing of premium liquor in Delhi.
Hence, the government will be able to increase revenue
Increased excise revenue is one of the stated objectives of the proposed changes.
Delhi is currently home to more than 700 liquor shops operated by four government companies. The government will also consider changes that would bring about a better retail experience and make shops more commercially viable.
The extent of impact on consumers is dependent on the final policy and ultimately on the eventual excise rates and retail margin structure.
When will the new policy take effect?
The final draft is ready, but it has not yet become the final notified policy. According to the September 28 report, a new excise officer is expected to be appointed before the proposal is sent to the Delhi Cabinet and Lieutenant Governor Taranjit Singh Sandhu for approval.
If so, the government is going to announce the policy in October 2026, before the peak festive season.
