Your Cigarette Pack Could Cost 17% More in May; Here's Why

Cigarette stocks surged as much as 7% on the afternoon of April 29, a report indicated that both companies plan to raise cigarette prices by up to 17% in May, following earlier hikes implemented this year due to excise-duty increases, reported The Economic Times.

The price of one pack of Goldflake Premium is expected to increase from ₹115 to near ₹135 in May along with similar increases across other value-end brands sold by ITC and Godfrey Philips, NDTV Profit report stated.

Reasons Behind Share Rally

This comes after companies sharply increased cigarette prices following the government’s move to increase duties on cigarettes and other tobacco products. The excise duty imposed on cigarettes took effect from February 1 this year, in addition to a 40% GST.

Excise duties on cigarettes were restructured to a range of ₹2,050 to ₹8,500 per 1,000 sticks under the new frameworks. This materially raised the overall tax burden on cigarettes, triggering concerns over demand, margins and the risk of increased illicit trade.

Impact on Stock Prices

Cigarette prices are expected to increase by approximately 17% in May 2026, NDTV Profit reported citing channel checks with distributor conversations.

The government had raised excise duty on cigarettes by 30-40% with effect from Feb. 1, 2026. Manufacturers then increased prices across segments, with premium products seeing sharper hikes than lower-priced categories.

In the king size segment, per-stick prices moved to Rs 25-28 from about ₹20, prompting some consumers to shift to lower-priced alternatives, while the overall smoker base remained broadly unchanged, dealers had said.

Reason for Price Hike

According to PTI, a packet of wills Navy Cut (76 mm), earlier priced at ₹95 per pack of 10 sticks, is expected to cost around ₹120 per pack.

Cigarettes of 84 mm length – such as Gold Flake Kings and Lights, Wills Classic and Wills Classic Milds – currently priced at 170 per pack of 10 sticks, are expected to cost between ₹220 and ₹225 per pack.

Similarly, slim cigarettes such as Classic Connect (97 mm), priced at ₹300 for a pack of 20 sticks, are expected to have an MRP of around ₹350, the report said.

However, distributors fear that the price hikes could lead to increased smuggling and the spread of counterfeit products. According to the All India Cigarette and Tobacco Distributors Federation (AICPDF), there are around 8,000-9,000 stockists of cigarettes and tobacco products across the country.