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Sony Music has come under fire after it increased the price of a Whitney Houston album on Apple's iTunes Store hours after the singer was found dead.

The music giant is understood to have lifted the wholesale price of Houston's greatest hits album, The Ultimate Collection, at about 4am California time on Sunday. This meant that the iTunes retail price of the album automatically increased from £4.99 to £7.99.

Houston's The Ultimate Collection, originally released in 1997, was the second top-selling album on iTunes on Monday morning. Apple returned the album to its original price late on Sunday.

Music fans described the move as a cynical attempt to capitalise on Houston's in-demand greatest hits records. The price hike came as tributes flooded in for the singer, whose catalogue includes hits such as I Wanna Dance With Somebody and I Will Always Love You. Houston was found dead in her Los Angeles hotel room on Saturday afternoon, local time, at the age of 48.

The change happened when Sony Music, which owns the rights to much of Houston's back catalogue, increased the wholesale price of The Ultimate Collection. This automatically boosted the retail price of the popular album, although Apple is responsible setting the price paid by music fans.

It is understood that the change occurred after Sony Music reviewed Houston's iTunes catalogue after the singer was pronounced dead.

One insider close to the situation said the price hike was not a "cynical" move – but that the wholesale price of Houston's The Ultimate Collection was wrong. The change in wholesale price boosted the album's retail price on iTunes.

Houston's The Ultimate Collection and Whitney – The Greatest Hits were in the top three albums on iTunes at noon on Monday.

Apple and Sony Music declined to comment.