Saudi Cigarette Prices Increase by 20%

Source from:  Gulf Business 03/15/2016

Prices of cigarettes in Saudi Arabia have reportedly increased by 20 per cent, following speculation that a 100 per cent hike was imminent.

Almost all brands were not available on Saturday but reappeared yesterday with revised prices, according to Arab News.

There were signs that the price hike was having an effect.

A Saudi worker Ahmed Hussein, told the publication: "I think it is time to give up smoking. Cheaper cigarettes are of a poor quality," after the price of Marlboro cigarettes jumped from SAR 10 to SAR 12.

Confusion still remained over the new pricing with several shops in Riyadh and Jeddah not offering cigarettes for sale on Saturday and Sunday, according to Reuters.

This followed a report by local new website Sabq.org quoting the Saudi Customs Authority on Saturday, suggesting tobacco prices had doubled. However, there was no official communication confirming the hike.

In a budget statement for 2016 in December, the Finance Ministry said it would apply additional fees to "harmful goods such as tobacco, soft drinks and the like".

An executive at a tobacco distribution company told Reuters yesterday that the import fee for a consignment he tried to bring into the country yesterday had doubled.

A survey of 2,057 people released by King Saud Bin Abdulaziz University for Health Sciences in 2014 found that 39 per cent (802) were smokers. Of these 92 per cent were male.

The report suggested increasing the cigarette price from $2.67 (SAR 10) to $8.27 (SAR 31) would force many smokers in the country to quit. Enditem