Gallaher and Imperial Tobacco are to raise the price of their cigarettes this month in order to compete with a shrinking market.

Gallaher cigarettes, which include Mayfair and Benson & Hedges brands, will increase about 3p to 8p per packets, while Imperial, which makes the Embassy brand, is to put its prices up by between 6p and 8p.

Around 40% of UK cigarettes are made by Gallaher, but this market has been gradually declining in numbers as anti-smoking campaigns see increasing success.

The rise in prices was expected following the release of the Government’s White Paper on Health, published last November, which proposed a total ban on smoking in all workplaces and restaurants and the majority of pubs by 2008.



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