SPRINGFIELD — Increasing the cost of cigarettes $1 could mean less money for the state, according to a report released Wednesday.

The study, conducted by Illinois State University professor Rajeev Goel on behalf of the Illinois Association of Petroleum Marketers and Illinois Association of Convenience Stores, found that more people would buy cigarettes in bordering states, which would offset potential revenue generated.

Opponents also charged that Illinois convenience stores would lose out on profits.

“If this tax is enacted, it will paralyze (the convenience store) industry,” said Bill Fleischli, executive vice president for the two associations.

Lawmakers are considering legislation that would raise the tax by 50 cents in September and 50 cents more a year later. The proposal was approved by the Senate and is awaiting a vote on the House floor.

Instead of two 50-cent increases, the report suggested that four 25-cent increases would produce greater tax revenues.

Gov. Pat Quinn likely would sign off on the measure if it reaches his desk because he estimates it could raise $365 million for his budget plan. Proponents also say raising the price is a good way to get people to quit.

The increase could come months after the federal government increased its share of cigarette taxes by 62 cents.

Illinois last raised cigarette taxes from 58 cents to 98 cents in 2002.

“Illinois is not an island, and we kind of create our own problems when we set ourselves apart this way,” said Rep. Roger Eddy, R-Hutsonville, whose district borders Indiana.

Opponents also questioned whether cigarette taxes are a stable source of income because revenues have declined in recent years. The state’s income from cigarette taxes has declined from $742 million in the 2005 fiscal year to $594.2 million last year.