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Cigarette prices rise ahead of tax hike

LITTLE ROCK, Ark. — Though a federal cigarette tax hike remains weeks away, at least two U.S. cigarette makers already have upped prices and another is cutting some wholesaler discounts as demand drops.

Both Altria Group, which owns Philip Morris USA, and Lorillard, which makes Newport cigarettes, increased their carton and pack prices in recent days.

Neither company would say what prompted the increases. But the federal tax on cigarettes will rise from 39 cents a pack to almost $1.01 on April 1.

The federal excise tax increase will help fund children's health care.

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