Lahore, Pakistan — The prices of cigarettes showed around 11 to 20 percent increase on Thursday, the first day after presentation of the federal budget 2008-09.

Major impact in terms of percentage has been witnessed on B-grade brands while the prices of A-grade brands rose but in terms of percentage it was less. The prices of B-class brands showed an increase of around 17 to 20 percent while A-class brands showed an increase of 11 to 13 percent.

In a number of areas, shopkeepers stopped sales of cigarettes saying that supply in the market is short and the companies are not supplying the stocks. The government on Wednesday raised central excise duty on cigarettes but the prices of cigarettes have been rising since the start of June, as shopkeepers and the companies were expecting raise in prices in the budget. An artificial shortage was also seen in the market a couple of days before the budget was announced. Though the companies have not raised the prices of cigarettes but even then the people have no other option but to buy expensive cigarettes, said a shopkeeper Sabir Hussain of Gulberg. The market forces created a shortage earlier and then cashed the issue in their favour, he added. The customers said that it shows weak management of the government, as it should keep a vigilant eye on the hoarders. "The budgetary steps and duties levied would be implemented from July 1 but even then the prices have started rising," said a customer Rana Asif while buying cigarettes from a shop.

A salesman Tariq Mehmood of a local company said that the companies have not stopped or reduced supplies of cigarettes and it is the market players who have exploited the situation.

By
Nauman Tasleem
Daily The News