Cigarette prices set to rise once old stocks are over

Manama : Cigarette prices will rise once the old stocks are drained out from the local market, confirmed Industry, Commerce and Tourism Minister Zayed bin Rashid Al Zayani.

However, he also stated that there would only be a trivial rise of about 200 fils.

“We’re in a transition stage until the old stocks are over. Then the new stocks with the amended prices will be pumped into the market. According to Customs Affairs, the rise would be of around 200 fils per pack,” the Minister said during the weekly post-Cabinet briefing at Gudaibiya Palace yesterday.

“The Ministry’s role is to maintain a balance in the purchasing and selling equation in local markets,” he clarified, “We try to avoid interfering in prices, but we don’t allow any manipulation of prices, collusion or monopoly between traders, suppliers or distributors. The general principle of the market is the supply and demand concept. But if we detect any misuse of this principle, and if some people in the industry aren’t taking this responsibility with honesty, we must interfere.”

“We’ve done this duty when the removal of meat subsidies was first introduced, and strict measures were taken against violators then.  Similar situations recurred with the cigarettes price increase and we have combated it,” he said.

 It was reported earlier this month that tax has been increased on some commodities, including cigarettes, sheesha molasses and alcoholic beverages by 100 to 125pc. But, the authorities have not introduced any specific price yet. 

When the information was leaked, shelves displaying cigarettes were emptied within a few hours, as customers were buying them in large quantities.

Industry, Commerce and Tourism Ministry’s Consumer Protection Directorate stated back then that it warned stores of manipulating prices or stashing cigarettes stocks.

Despite repeated assurances from authorities that the trade is normally progressing, small cold-stores claimed that “suppliers refuse to provide them with popular cigarette brands and have imposed certain limitations on them.”