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Indian tobacco users might experience another price shock as ITC Ltd and Godfrey Phillips India Ltd intend to raise the prices by some 17 percent on May 1, 2026.

As per channel checks with distributors, there will be an increase in pack price of popular brands such as Goldflake Premium, but the increase may be between 115 and 135. Increases of equal magnitude are likely to take place in value and premium segments, such as Marlboro variants.

This new increase follows a fresh February 2026 government restructure of the excise duty that substituted the GST compensation cess with a new structure with 40% GST and other per-stick charges. The increase had already caused the prices of cigarettes in the country to rise up to ₹22-55 per pack of 10 sticks in the earlier part of this year.

Manufacturers are transferring the cumulative cost pressure to industry sources, say. Distributors, however, have cautioned that their frequent increases in prices may enhance illegal trade and fake cigarettes in the market.

The reports led to an increase in cigarette stocks of ITC and Godfrey Philips to a 7 percent level by April 29. The recommendation to higher costs is being given to smokers who are being targeted by companies in an attempt to cushion against increased taxes on tobacco products.