STREET PRICES OF CANNABIS, ECSTASY AND COCAINE AT AN ALL-TIME LOW

The price of cocaine, ecstasy, cannabis and other drugs is at an
all-time low, clearly indicating that efforts to stem the spread of
illegal drugs on Britain's streets are failing.

The data, based on a survey of more than 2,300 people last year,
shows that cannabis resin sold for an average of UKP43 per ounce,
down from 2004's figure of UKP45 - and a big drop from the 1994
average price of UKP120 per ounce. Even at this low price, the profit
margin for the dealer remains high, at 169 per cent.

The annual survey of drug prices, to be released by the charity
Drugscope this week, shows how prices remain low.

Cocaine, sold for around UKP44 a gram, is one of the less profitable
drugs, with a profit margin of around 95 per cent.

Britain's continuing "pill-popping" culture, particularly in its
clubs, is indicated by the falling price of an ecstasy tablet, which
is usually bought for less than UKP3.

Amphetamines are also down in price, and cost an average of UKP9 a
gram - yielding a 237 per cent profit margin.

Heroin was one drug that went up in price - from UKP38 a gram in 2004
to UKP58 a gram last year. Its profit margin more than doubled, to
152 per cent.

Illustrating the economies of scale underpinning the demand for
drugs, dealers selling ecstasy tablets for less than UKP3 were still
able to pocket UKP1.50 a pill.

There are a number of factors involved in what is rapidly becoming a
"buyer's market", according to drugs counsellors. The decreasing
purity of some drugs is one reason for the fall in prices, as dealers
import drugs and then adulterate them with other, cheaper chemicals
in an attempt to hang on to their profit margins.

Another more fundamental reason for the steady drop in prices is that
traffickers are flooding Britain with illegal drugs, because demand
has increased.

Home Office research shows that one person in 20 aged between 16 and
24 has used cocaine or crack.

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CUT-PRICE HIGHS: How drug prices have fallen since 2000:

HEROIN: dropped from UKP70 a gram to UKP58

COCAINE: down from UKP65 a gram to UKP44

ECSTASY: fallen from UKP9 to less than UKP3 a pill

According to the Serious Organised Crime Agency (Soca), Britain is
one of the world's most profitable narcotics markets for gangsters,
despite a long-running "war on drugs".

Soca aims to stem the flow of heroin from Afghanistan and cocaine
from Colombia. It estimates that up to 35 tons of heroin are brought
into the UK each year.