Cigarette prices in the Gaza Strip have surged by tens and in some cases hundreds of percent since Oct. 7, turning what was once a basic item for smokers into a rare and costly luxury, residents and traders said.
Local merchants and residents blamed a combination of shortages, strict oversight by Hamas terrorists and what they described as taxes and fees imposed on goods entering the territory. They said the measures have helped Hamas tighten its economic control and generate revenue during the war.
According to traders in Gaza, Hamas terrorists exercise near-total control over goods entering the enclave, including fuel, poultry and cigarettes. Some products, they said, are subject to various payments, while merchants who sell at prices deemed too high face fines.
Hamas officials have denied the allegations. Ismail al-Thawabteh, head of Gaza’s government media office, has previously said reports of taxes on cigarettes and fuel are inaccurate and that no new taxes have been imposed.
Residents said conditions on the ground tell a different story.
“They say Gaza is starting to recover, and then you find yourself standing at a cigarette stall asking for three cigarettes for 10 shekels,” said Mohammed Joudeh, a resident of the Jabaliya refugee camp. “In the past, three packs of Royal cost 10 shekels. There were even cheaper packs — four for seven shekels — even if they smelled like diesel.”
A source in Gaza said most residents can no longer afford to buy a full pack. Individual cigarettes now sell for about 15 shekels, the source said, adding that at the height of the fighting prices reached as much as 120 shekels for a single cigarette.
“Before the war, a cigarette cost five shekels,” the source said. “Today, a pack of Marlboro is down to about 25 shekels, if you can even find it. In many places, it’s simply disappeared.”
A local trader said prices dropped slightly in October, when a limited increase in goods entering Gaza reached markets. “We saw more cigarettes and prices came down a bit,” he said, “but it’s nowhere near what it was before Oct. 7.” Even during temporary easing, he added, cigarettes remained too expensive for many residents, who chose to give them up altogether.
Israeli officials say restrictions on cigarette shipments into Gaza are intended to cut off a major source of income for Hamas terrorists. Security officials say cigarettes are easy to smuggle and highly profitable, and that oversight or fees imposed on them allow Hamas to generate millions of shekels even under military and economic pressure.
At the same time, officials acknowledge that shortages and inflated prices can also reinforce Hamas’ grip on the market by increasing traders’ and residents’ dependence on mechanisms controlled by the group.
The issue of cigarette smuggling drew attention in Israel after police arrested Bezalel Zini, the brother of Shin Bet chief David Zini, on suspicion of smuggling cigarettes into Gaza for profit. Police said he is suspected of aiding the enemy during wartime. Zini, who was arrested about two weeks ago, is expected to remain in custody at least through Thursday, according to court documents.