Cigarettes Price Increase

Well, being a smoker myself, one of the “must look” items from a new budget plan been announce every year is none other than the increase of cigarette’s price. The annual increase had been a trend for many years (as far as I can remembered) and to be honest, most smokers that I know (including me) will not stop this bad habit just because of price increase; they will simply find alternatives to satisfy their needs (buying cheaper/smuggled brand, shift to the traditional “rokok daun¹“, etc). I noticed today that British American Tobacco Malaysia had made an announcement that the company will increase all their tobacco base product which will be effective starting today. No need to make a guess; it’s because the new budget plan for 2009 announced by the prime minister.

Petaling Jaya, 1 September 2008 – As a result of the significant 20% excise increase, and taking into consideration the consequent impact of sales tax, trade margins and the higher than normal inflationary impacts on our own cost base, as global tobacco, paper and fuel costs have all increased by double digit amounts, British American Tobacco Malaysia has revised its cigarette prices.

The new cigarette prices, which will be effective Monday, 1st September 2008, are as follows:-
 • Dunhill Fine Cut 20s range RM 10.00
 • Dunhill D360 20s range RM 9.40
 • Dunhill King Size 20s range RM 9.00
 • Dunhill King Size 14s range RM 6.50
 • Kent King Size 20s range RM 9.00
 • Pall Mall Plain 20s RM 9.40
 • Pall Mall King Size 20s range RM 7.50
 • Pall Mall King Size 14s range RM 5.50
 • Pall Mall King Size 25s RM 8.20
 • Benson & Hedges King Size 20s RM 9.00
 • Benson & Hedges King Size 14s RM 6.50
 • Perilly’s 100s 20s RM 7.70
 • Perilly’s King Size 20s range RM 7.50
 • Perilly’s King Size 25s range RM 8.20

Source: British American Tobacco Malaysia

My Take
Since it’s really a predictable move, I’m not surprised at all. At some point I would say it’s a good move because the intent is to discourage people from continuing the smoking habit. But, on the other hand, is it effective? Each year we see increases, but does that stop the habit significantly? From my personal experience, no it does not. People will seek for alternatives (be it legal or not) and to be honest really…the solution to remedy the smoking problem is always not laying on money, it’s the attitude (and hunger, lust, craving for it…hehehe true smokers know what I’m saying 😎 ). Will I stop? Maybe in the future but surely not because of price increases 😀