On January 2, the day after the economic decrees came into effect, I passed a friend at work. She was so nervous that even a few puffs of her cigarette after coffee could not calm her down. "You won't believe it," she said. Today, I paid two more shekels for a pack."
Currently, prices cost between 30 and 50 shekels per pack, which can amount to thousands of shekels per month.
This increase is similar to the one that occurred in March 2024, when the government raised the purchase tax on cigarettes, e-cigarettes, and roll-your-own tobacco. To bring another 400 million shekels into the state treasury, smokers were forced to pay an additional two shekels per pack of cigarettes, another shekel per ml of liquid in the e-cigarettes, and five shekels for a 40-gram package of roll-your-own tobacco.
Smokers pounded with price increases
Only ten months have passed since then, and once again, smokers are being hit by price increases, this time due to a 1% VAT increase. However, as with other products, the price increase is much more than a single percentage point.
A study conducted for Walla by the Retail Research Institute shows that cigarette prices have increased by 3% compared to December before the decrees. Over the past year, consumer prices have increased on average by about 15%. If that wasn't enough, there has been a surge in general consumption following the war, and consumption is high among reserve soldiers.
Here are some examples of the highest and lowest price increases for cigarettes in retail chains between December 2024 and January 2025: Pal-Mal Super Slims cigarettes increased in price at Machsanei Hashuk by 4.28%, a difference of 1.66 NIS, and at Shufersal Deal by 1.01%, a difference of 38 agorot per pack.
Marlboro Gold jumped 4.87% at Machsani Shuk, an increase of 2 shekels per pack, and at Shufersal Deal by 0.8%, an increase of 35 agorot. For LM Red cigarettes, you will pay 2.02 shekels more at Machsani Shuk, an increase of 5.45%, and at Shufersal Deal by 66 agorot, an increase of 1.62%.
Pal-Mal cigarettes jumped 3.92% at Victory, a total of 1.22 shekels, while Yochananoff did not raise the price. The Yochananoff chain also did not increase the price of Winston, while Shufersal Deal increased by 4.54%, an increase of 1.68 shekels per pack.
Marlboro Fine Touch went up 5.95% and, at Yochananoff, by only 1.63%. A pack of Winston Super Slims Blue went up 4.2% at the market warehouses, while at Shufersal Deal, it was only 1.38%.
The price of Gold Golf cigarettes rose by 8.3% at Victory and 1.8% at Yochananoff. The price of Time Red Short cigarettes jumped by 7.14% at Victory and by 2.8% at Yochananoff. Europe jumped by 7.14% at Victory and by a relatively moderate 2.8% at Yochananoff. Nobles Filters have also gone up in price beyond the VAT increase and can be bought at Victory for 6.92% more than last month, and at Yochananoff, you will pay "only" 2.68% more. Kent Green is now 4.05% more expensive than it was in December at the market warehouses, and at Yochananoff, the price has not gone up at all.
“Cigarette prices continue to rise quietly, without public protest,” said Dr. Hezi Gur Mizrahi of the Retail Research Institute. “This is because it is a product with a negative image, and public policy is aimed at reducing its consumption. Business owners are taking advantage of the situation to align with market trends and raise prices. However, they are well aware that selling cigarettes serves as an anchor to attract customers and prevents them from leaving for competing convenience stores.”
Such stores attract smokers who are unable to withstand the burden of rising prices. "Cigarette consumers are smart consumers," a source involved in the market told Walla. “If there is a store that lowers prices, the information spreads quickly. There is a small store in Ashdod that works like crazy. The owner sells at a profit of 3.5% in cash and 5% on credit. Customers come there on the weekend and load up on stacks of packets.”
They concluded, “The retail chains know this and probably don't get excited. As proof, when there are deals on purchases of over 100 shekels, they state that they don't include cigarettes. A person buys three packs and easily reaches 100 shekels. They don't want to lose, but they trust those who will come and buy the cigarette because they have to.”