THE tobacco industry has been accused of ‘carpet-bagging’ by charging this year’s prices on last year’s stock.

Senator Philip Ozouf claims that smokers have been ‘ripped off’ by about £500,000.

He said that prices rose by 40p a packet – equivalent to a duty increase approved in the Budget in December – at the start of the year on stock which had been bought before the duty rise applied.The Senator said that research he had done showed that there was between two and three months of last year’s stock in warehouses at the turn of this year.

‘By my calculations, smokers are being ripped off by about half a million pounds by paying supposed duty on cigarettes that have not been subject to the duty rises,’ he said.Meanwhile, it has emerged that the price of cigarettes in many pub and restaurant machines has been increased above the duty level.

It is known that up to 11p extra is being charged on some brands.In the States yesterday Senator Ozouf launched a blistering attack on the tobacco industry for the price increases.

He said that the duty increase should be applied only to newly imported products removed from Customs warehouses since 1 January this year.

However, he said that on 2 January – the first working day of the New Year – prices had already been increased in some outlets.

‘I accuse the tobacco industry of carpet-bagging over prices,’ he said.

‘There is no excuse for it.

It is absolutely appalling.’Although he conceded that the actions were ‘not a criminal offence’, he described them as ‘a bad show’ and he vowed to find out who was responsible for the price increases.

He said he had spoken about the issue to importers and retailers and that they blamed each other for the increase in prices.Tobacco Importers Association spokesman Peter Tabb said: ‘The price charged in the shops is entirely at the discretion of the retailers and is not the concern of the importers.’One store group reported to have increased prices in early January was Spar.

Asked if he could explain the reason for the price increases, Spar managing director Nigel Robson said: ‘I don’t think I have to explain it.

I have no further comment to make.’A spokesmen for Le Riches Stores, John Garton, said that they put prices up on 6 and 7 January.

However, he added that they held about ten days’ supply of stock and a surge in sales just before the New Year had prompted the price rises on those dates.A spokesman for Aztec Vending – who supply cigarettes to many machines – was not available for comment.Senator Ozouf said: ‘This sort of thing will not be allowed to happen when we have a competition law.

We are progressing toward introducing that law, but in the meantime I am still determined to find out who is responsible for this rip-off.’