Smokers left fuming as price of cigarettes moves closer to €6 a pack

SMOKERS have been left with another reason to fume after the cost of several popular brands of cigarettes rose by 10 cent yesterday.

Tobacco manufacturers Gallaher announced a range of increases which sees the cost of a packet of 20 cigarettes hit almost €6.

Industry sources predicted that the other two major tobacco companies, P J Carroll and John Player will also follow suit with similar price increases in the near future.

"It would be a big surprise if Gallaher's competitors don't also raise their prices, because that is what has occurred regularly in the past," said one tobacco industry insider.

Gallaher has increased the price of a packet of 20 cigarettes by an average 10 cent on brands including Silk Cut, Camel and More.

The increases see the price of Benson & Hedges Gold King Size go up to €5.86. Price increases have also been applied to the company's other products including roll-your-own tobacco and cigars.

The latest increases follow quickly on the 50 cent hike on a packet of 20 cigarettes in last December's Budget as part of a campaign by Health Minister, Micheál Martin to reduce the number of smokers.

According to the latest Consumer Price Index, the price of cigarettes grew by 14% in 2002, while other tobacco products cost 10% more far in excess of the inflation rate of 4.1% over the same period.

Nobody from Gallaher was available for comment yesterday. A spokesperson for P J Carroll said the company had no plans to increase the price of its tobacco products.

The latest increase is certain to add to the pressure on inflation, despite attempts by Mr Martin to have tobacco prices removed from the CPI.