Summary An illicit heroin market has existed in London since the 1960s. From 1970 illicit supplies from Southeast Asia and subsequently Southwest Asia increased. Two hundred and twenty‐four reports on ‘retail’ and ‘wholesale’ illicit heroin prices were collected between 1980and 1983. Over that period the average retail price reported was £7 8 per gram, almost twice the average wholesale price of £41.00. Between October 1980 and June 1983, retail and wholesale prices fell by 20–25 per cent relative to inflation. Reports from heroin users and other indicators over this period suggest that heroin availability increased and that dilution (‘cutting’) was much less significant than in the United States. The distribution system and the effect of price fluctuation on consumption are discussed. It is argued that retail and wholesale heroin prices provide a useful indicator of market conditions. The evidence points to a flourishing and expanding market in illicit heroin.
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Lewis et al. (1985) studied this question.
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