Cigarette prices to skyrocket next week


cigarette
Mathew Macquarrie | Unsplash

Some brands of cigarettes are already more expensive than before lockdown. According to Business Insider, premium brands such as Camel have shot up by as much as 35%, while mid-market brands such as Winston have stayed level.

Business Insider South Africa compared the prices of popular cigarette brands before and after the lockdown using historical price data from the Research Unit on the Economics of Excisable Products (REEP) at the University of Cape Town against their own survey of post-lockdown prices in Cape Town this week.

Their findings show how the prices of premium brands, such as Camel have skyrocketed by as much as 35%, while the prices of mid-market brands such as Winston and Rothmans have stayed about the same, even getting slightly cheaper. Marlboro is 30% more expensive, while Peter Stuyvesant is 19% more expensive.

Read More | New law proposes a 100% ban on public smoking in South Africa

“It’s important to note that we’re comparing REEP’s pre-lockdown national average prices to our own survey of post-lockdown specific prices at retailers in Cape Town,” Business Insider reports. “REEP’s data is an average price, that takes into account region and type of retailer. That means the data can’t strictly be compared but can provide only a rough indication.”

But there is even more bad news for smokers; the prices of certain cigarette brands will go up even further next week. British American Tobacco says the price increases are necessary to claw back some of the revenue lost during the ban on cigarettes.

The company confirmed via a letter to retailers that it will be raising the prices of its brands between 4% and 10% to try and regain some of the revenue lost this year. Brands that will see a price increase include Peter Stuyvesant, Pall Mall and Dunhill. Prices will go up on Monday, 24 August.

Read more on the latest local news, right here.

Business Insider SA compares the prices of popular cigarette brands before and after the lockdown using historical price data from the Research Unit on the Economics of Excisable Products (REEP) at the University of Cape Town against their own survey of post-lockdown prices in Cape Town.

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