The price of a pack of cigarettes in Romania will increase by up to 20 Romanian bani starting July 1, 2012. The price rise is due to an increase in excise duty, from EUR 76.6 per 1,000 cigarettes to EUR 79.19 per 1,000 cigarettes, as set out in the calendar to align excise duties on tobacco, which runs up to 2017.

From July 1, 2012, the minimum excise duty will be EUR 76.5 per 1,000 cigarettes, with EUR 2.5 over the currently level of EUR 74 per 1,000 cigarettes. The average weighted retail price for 2011 is EUR 130.07 per 1,000 cigarettes, which translates as RON 11.18 per pack of cigarettes.

According to a recent survey issued by the Romanian Health Ministry, some 4.85 million Romanians smoke on either a daily basis or occasionally, spending an average of RON 273 (or EUR 62) every month on cigarettes, translating as some EUR 300 million spent every month on cigarettes. Another 6.5 million Romanians are suffering from passive smoking – at home, or in public places, where smoking is not yet banned.

The most frequently bought cigarette brands are Kent – with 33.8 percent, Marlboro – 9.7 percent, followed by Winchester, Viceroy and Winston.

The Romanian cigarette market is represented by the three international companies – British American Tobacco, Philip Morris, and JTI, which in 2011, contributed some EUR 2.75 billion to the general consolidated budget in excise and VAT.

Irina Popescu, irina.popescu@romania-insider.com