Fire Rescue Victoria crews were called to what is believed to be a tobacco shop on Victoria Street at Richmond, in inner city Melbourne, at 4.15am on Monday.
Crews arrived within three minutes to find the shop, on the edge of Melbourne's city centre, fully alight before 80 firefighters and 25 firefighting trucks battled to get the blaze under control by 6am.
A Fire Rescue Victoria spokesperson said around 10 shops within the one building were impacted by the fire.
No one was inside at the time.
Victoria Police say unknown offenders drove a vehicle into the business before setting the building alight and fleeing.
A damaged white Mazda four-wheel drive remains outside Alexander Convenience and Gifts on Victoria St hours after the store was set alight.
A crime scene is in place and a police investigation into the incident is underway.
Victoria St is expected to remain closed to both cars and trams for several hours between Church and Hoddle streets following headaches during Melbourne's morning peak hour.
Monday's fire follows another tobacco store targeted by arsonists in nearby Bridge Road last week, all expected to be a part of the ongoing tobacco wars hitting the nation.
Demand for illegal tobacco has exploded in Australia following large tax increases on legal products, pushing up the price of a legal cigarettes pack towards $50 and prompting a rise in black market activity.
There has been at least 150 tobacco store fires and another 30 blazes involving cars, restaurants and other venues in Victoria since March 2023 as criminal syndicates compete for their slice of the market.
The Gang Crime Squad, formerly Taskforce Lunar, has executed more than 350 raids and made at least 212 arrests for offending connected to crime groups involved in the illegal tobacco trade.
More than $50 million worth of cash, illegal cigarettes, tobacco and vapes has also been seized.
Tobacco retailers were unregulated in Victoria until enforcement began on a licensing scheme in February.
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