Federal police have launched a major crackdown on the distribution of illegal tobacco, as one of Australia's largest independent service stations has its stores raided.

Pressure is mounting on the Albanese government to slash the tax on tobacco in a bid to kill off the burgeoning black market.

An estimated 80 per cent of all tobacco consumed in 2025 was illicit, up from 12 per cent in 2017, according to the Australian Bureau of Statistics.

The co-ordinated raids took place on Tuesday at more than 100 service stations in NSW, Victoria, Queensland, South Australia, Western Australia and the ACT.

It's understood Metro Petroleum service stations were targeted.

Julian Hill, the assistant minister for customs, said the servos had been targeted through shared intelligence and partner agency referrals.

"My message to anyone involved in the illegal tobacco trade is clear: we're coming after you," he told reporters at Parliament House on Tuesday.

"Australians wouldn't put up with a meth lab in the middle of their local strip shopping centre, and neither should they put up with crooks trying to sell tobacco and nicotine products to their kids, whether it's from a shop, a servo, a pub, or a barber.

"We're not backing off, and this is a serious major national operation that's still unfolding."

Operation Shorthand involved Commonwealth, state and territory partner agencies across six jurisdictions, and included the co-ordinated deployment of 250 law enforcement and regulatory officers.

The tobacco excise adds $30 to a standard 20-pack of cigarettes, creating drastically more expensive cigarettes in comparison to their illicit alternatives.

"Decisions regarding the temporary closure of service stations identified as selling illicit tobacco and vapes are the responsibility of the relevant state or territory agency and are exercised in accordance with that agency's legislative powers and authorities," a statement from the Australian Border Force reads.

Mr Hill said it didn't matter whether people were trying to sell or supply illegal tobacco, law enforcement agencies were going after those in the trade.

The operation remains active, with outcomes following the police action to be announced at a later date.