‘We haven’t heard a thing of a possible tobacco price increase yet, but this could easily happen. Producers have a right to raise prices for objective reasons, because of the inflation, for instance. If they choose to do so, tobacco may grow over 15% more expensive than now,’ Westline Company Ltd’s Commercial Director Olga Lototskaya said to UrBC.

Starting January 1, 2007, tobacco producers have to indicate the maximum retail price on each pack of cigarettes they make, and this price can’t be changed any more often than once a month. Rumor has it that a number of tobacco companies are preparing themselves for a significant price increase.

‘Even if this does happen, a price increase can’t possibly hurt the sales too much. If a person smokes, they will keep buying cigarettes despite a greater price,’ Ms Lototskaya said.