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[ Tuesday, Jan. 12, 1998 ]

Settlement ups cigarette price

By CHERYL FRANKENFIELD
Collegian Staff Writer

Smokers may find their purses or wallets are lighter this year because of the higher cost of cigarettes.

At the end of last year, 46 states were awarded a $206 billion settlement from major tobacco companies to cover the costs of smoking-related health problems.

According to a November 1998 New York Times article, analysts predicted tobacco companies would raise prices anywhere from 35 to 45 cents a pack, possibly more, to compensate for the settlement.


PHOTO: Lee A. McMahon
Doug Lippman (senior-communications) buys cigarettes at McLanahan’s Drug Store, 116 W. College Ave.

Individual packs used to cost about $2, but now cost about $2.50, said Roxanna Phelps, department manager at Wal-Mart, 373 Benner Pike. In the beginning of December, the prices on name-brand cigarettes typically rose 50 cents per pack and $5 per carton as a result of the court case settlement.

"It pisses people off," Betsy Madden (senior-psychology) said about the increase. "You're just addicted. It's your fault," she said about smokers who may or may not have additional health problems due to smoking.

Rather than have a legal settlement, she said she believes it is the responsibility of the individual to pay for additional health care costs related to smoking.

Other students said the price increase was a surprise and an annoyance.

Sylvette Rivera (senior-psychology) said she always exclaims "Why? Why?" while in the checkout line buying cigarettes.

"You think (the higher prices) would make people stop smoking," Rivera said, adding that a pack of cigarettes was cheaper just a few months ago.

But cigarette sales have not significantly changed as a result of the higher prices. People are still buying at the same rate, Phelps said.

"It depends on where you go (to buy cigarettes)," Miguel Kim (senior-business logistics) said, adding his cigarettes now cost $2.64 a pack.

Prices became more expensive starting last semester, Kim said.

When Rob Jaworski (senior-business logistics) started smoking about seven years ago, he didn't realize prices would grow so high. He originally paid about $1.50 to $1.60 for a pack.

"It's a choice to smoke. I don't think I should be charged more," Jaworski said.

Duana Gummo, an employee at McLanahan's Drug Store, 116 W. College Ave., said the rise in cigarette prices was out of the stores' control. The price increase was a surprise to some customers in the first few days, she said, and some people mentioned they were going to try to quit smoking.

Gummo said the store has sales and pre-packaged deals, which offer customers some savings.

"We try to keep prices as low as possible."




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