Retailers Urge Action as Illegal Tobacco Crisis Escalates

Convenience stores and petrol stations across Australia are calling on the government to reduce cigarette prices, warning that escalating violence linked to the illegal tobacco trade is fast becoming a national crisis.

Recent financial reports from two of the country’s largest petrol station operators, Ampol and Viva Energy, reveal the significant impact of the black market on legitimate businesses. Both companies have suffered substantial revenue losses over the past year, highlighting the growing dominance of illegal sales.

The Rising Divide Between Legal and Illegal Tobacco

Despite persistent pleas from retailers, the federal government remains committed to its policy of increasing cigarette prices by five per cent annually, with the average pack now retailing at approximately $50. In stark contrast, illicit tobacco products are being sold for as little as $15, creating an unprecedented gap that continues to fuel underground markets.

Theo Foukkare, CEO of the Australian Association of Convenience Stores, warns that local retailers are reaching breaking point. He argues that the widening disparity is not only harming legitimate businesses but also exacerbating one of the most violent gang conflicts the country has seen in recent history. Over the past 18 months, police estimate that around 200 stores have been attacked as criminal groups vie for control of this lucrative illegal trade.

Retailers Living in Fear

Even shop owners who strictly adhere to the law are living in fear of being targeted. The increasing violence surrounding the illicit tobacco market has made it clear that no business is truly safe.

The crisis took a tragic turn in February when a 27-year-old woman in Melbourne became the first recorded fatality linked to the so-called ‘tobacco wars.’ Authorities believe she was the victim of mistaken identity, a chilling reminder of how far criminal networks are willing to go to dominate the market.

As the situation worsens, retailers continue to plead with the government to reconsider its stance on tobacco pricing, arguing that immediate intervention is needed to curb the power of criminal syndicates and protect both businesses and innocent lives.

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