DAMMAM, 24 December — The recent price increase of various brands of cigarettes was the result of independent decisions taken by a number of retailers in the Eastern Province.
Most distributors of various British and American brands have clarified that there has been no official increase in their prices.
However, Al-Babtain Group said it has increased the price of Marlboro by 50 halalas per packet. This increase is the result of a general price hike by manufacturers Phillip Morris of the United States. Marlboro Red and Marlboro White will now cost SR5.50 per packet of 20. The new prices came into effect yesterday.
An executive of Binzagr Group, distributors of many British brands, told Arab News that they have not increased the prices of any of the brands they deal in. However, he did not rule out the possibility of an increase "in the near future".
Many retailers in the Eastern Province have been selling various brands of cigarettes at hiked prices. The Arabic press subsequently reported that prices of Marlboro cigarettes have been hiked by 40 percent. But the distributors yesterday clarified that the increase was just 50 halalas, which amounts to a 10 percent increase — and that this smaller increase anyway has only been effective since last Saturday.
An official at the Ministry of Commerce said the department had not received any complaints from consumers about the price hike.
Abdul Ali Abdul Ali, director general of the anti-fraud department, said the ministry will seek an explanation from the distributors in the event of any such complaints in the future.
The King Faisal Specialist Hospital has filed a lawsuit in Riyadh court against several cigarette companies and their agents in the Kingdom seeking damages running up to SR10 billion toward the cost of research and treatment of smoking-related diseases. The local court is expected to consider the case shortly.
Legal sources say the current price hike may have been related to the litigation, as the cigarette companies want to raise enough funds for the payment of damages in the event of a court verdict against them. However, a source at one tobacco company denied any link between the price hike and the lawsuit.
The cigarette industry has incurred huge losses due to a worldwide campaign against smoking. Saudi Arabia has also intensified its own anti-smoking campaign. It has been announced that all the cigarette packets will now carry an additional warning saying that they are for sale only to adults.
Smoking among teenagers has been increasing at an alarming rate in the Middle East and Gulf region. Studies have revealed that teenagers are more prone to cigarette addiction.
All supermarkets and small shops, as well as tobacconists, have been instructed not to sell cigarettes to youngsters below the age of 18. Punitive measures will be taken against those found flouting the rule.
Despite this and other measures against smoking, cigarette sales are rising.
