Shops, suppliers and smokers are fuming over a severe shortage of cigarettes after stocks were withheld due to the expected rise in tobacco prices in Monday’s Budget. One distributor said he had not supplied any cigarettes to shops since the beginning of the week because his stock was depleted. The shops he delivers to also have empty shelves.

“They call me practically every hour to see if I managed to get some stock but I cannot help them,” said the irate supplier, who did not wish to be named. My hands are tied. Customs would not release more cigarettes because of the Budget, I was told. So I am at home, waiting, because that’s all I can do.”

Cigarette prices are set to rise as part of government plans to raise indirect taxation by €24 million.

In anticipation of higher prices, the Customs Department imposed a limit on distribution to retailers. Sources said the aim was to avoid confusion between old and new stocks once the increase in excise duty comes into force.

However, this was causing difficulties, including loss of revenue, because whereas the withholding of stock usually happened two or three days before the Budget, this time it started two weeks before.

Many cigarette shelves were empty yesterday and retailers complained they were also losing out on other business. A stationer said that, usually, clients would buy other goods along with cigarettes such as newspapers, cards and mobile top-up cards. Instead, clients were leaving when told no cigarettes were available.

A Finance Ministry spokesman described the withholding of stock as “the norm”, adding that Customs was exercising “its discretionary powers to ensure an orderly market”.

But wholesalers complain that the quota set by Customs was too low to meet demand.