Taskforce Lunar formed to tackle arson attacks on tobacco stores

Victoria Police believe up to 29 fires were linked to the dispute with 28 of those targeting tobacconists.

The fires caused significant damage to the businesses but no one was physically injured "with the exception of several offenders who have set themselves alight," police said.

Investigators believe the arson attacks and other incidents stem from criminal syndicates competing for their share of the illicit tobacco market.

The market is "increasingly attractive to organised crime syndicates" who perceive lower penalties for offending and a significant opportunity to profit, police said.

Syndicates were allegedly placing illegal tobacco into stores, demanding stores sell their products and asking for a weekly 'tax'.

"This 'tax' is then directed to the organised crime syndicates involved in the conflict," police said.

Somewhere between 800-1000 tobacco stores are currently operating in Victoria, police believe.

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Middle Eastern organised crime groups and Outlaw Motorcycle Gangs are believed to be behind these attacks, police said.

The syndicates were engaging young people, street gangs and low-level offenders to carry out attacks.

"The reality is, any tobacco shop across Victoria is currently at some risk of being targeted. We've also seen some stores repeatedly targeted," detective superintendent Jason Kelly said.

"Where we have information about those threats, we will step in and act, however we need those in the industry along with members of the public, to be our eyes and ears.

"Finally, I have a message to those consumers buying illicit tobacco from stores - you are essentially funding organised crime.

"I urge you to think twice before doing this because it is this profit that is fueling this dispute.

"We want to bring an end this any way possible and part of this is making it uncomfortable to stores to sell illicit product."

Police have arrested 13 people in connection to these incidents.

Anyone with information about these incidents or with further information about illicit tobacco is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential crime report at www.crimestoppersvic.com.au