Between Delhi and Gurugram, many would agree that Gurugram offers comparatively cheaper alcohol than Delhi. And if you too think so, the new Delhi liquor policy might soon change that notion. The Delhi government is reportedly considering bringing liquor prices down, aligning them with those in the Delhi National Capital Region (NCR) cities, particularly Gurugram. This policy, which is in talks as of the second week of October 2025, will make alcohol cheaper.
The excise committee, during a meeting on October 3, 2025, discussed a framework to bring a more “transparent and socially secure” policy. Headed by minister Parvesh Sahib Singh, the draft of this framework is expected to be ready by November 2025. So far, four such meetings to discuss things related to the new Delhi liquor policy have been conducted, with topics of discussions focused on the fixed retail margin, excise duty, legal age of consuming beer in Delhi, and availability of premium brands.
One of the key factors why Delhi has costlier alcohol than Gurugram is the fixed retail margin cap that is imposed on per-bottle sales.
For those unversed, a margin cap is usually a government-mandated or self-imposed limit on the maximum profit margin a retailer can charge for certain products. This ‘cap’ is often used to keep a tab on consumer prices, reduce inflation, and prevent excessive profiteering on essential goods. While Delhi has a fixed retail margin cap, Gurugram doesn’t.
As of 2025, Delhi caps retail margin at INR 50 per bottle for Indian Made Foreign Liquor (IMFL) and INR 100 for imported liquor.
The liquor policy in Gurgaon is also somewhat different than that in Delhi. Here, the trader has more control and flexibility over the prices and discounts. This is because they pay a huge amount during the auction of the licence, a minimum reserve price of around INR 20 crore. This gives them enough leverage to give discounts and offers to consumers.
Also Read: Delhi Govt Drafts New Liquor Policy; Aims At Price Parity, Safe Environment, And More
Delhi has a fixed margin cap, which when combined with the absence of private liquor shops, has resulted in the limited availability of premium imported liquor. As of 2025, liquor sales in Delhi are controlled by only four government corporations operating over 700 outlets.
State-run shops, like those in Delhi, often prioritize lesser-known brands that are priced below INR 600 rather than stocking up on high-end labels.
The absence of private shops has resulted in government-run shops establishing their monopoly in the retail sector. They’re doing so by pushing lesser-known brands instead of the more high-end labels. A plausible solution to the same could be rationalizing margins and bring back popular high-end labels to retail shelves in Delhi.
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Phased out in November 2021, the Delhi government is reportedly considering reintroducing private liquor stores. The phase-out was set in the backdrop of allegations of irregularities and favoritism, and the phase-out resulted in an estimated loss of INR 2000 crore to the government.
To address this loss-making, the government is likely considering bringing back privately owned liquor shops. These shops will also likely introduce premium high-end labels on thor shelves.
The new excise policy is also considering a proposal to lower the legal drinking age for beer from 25 to 21. However, officials have stated that there was no consensus on the change. So, even if there are reports that the legal drinking age will be dropped from 25 to 21, there is no official confirmation in the upcoming Delhi liquor policy.
The new Delhi liquor policy is expected to be ready by November 2025, with the Delhi government considering lowering alcohol prices to align them with those in the Delhi NCR region. This could likely result in the alcohol in Delhi costing just as much as that in other NCR cities like Gurugram. The new policy is also reportedly considering the reopening of private liquor shops. What do you think of this new excise policy?
