The latest followed a tobacco shop being destroyed by fire in two attacks in two days.
Police said the arrested men are linked to the Finks Outlaw Motorcycle Gang, with the Special Operations Group called in to arrest a a 41-year-old Werribee man, believed to be a patched member of the Finks OMCG.
He was charged with seven counts of criminal damage by fire and was remanded in custody.
Four others were also arrested including a 30-year-old Templestowe man and 32-year-old Albion man, both believed to be patched members of the Finks.
They were charged with numerous counts of criminal damage by fire and remanded in custody.
Taskforce Lunar has 28 active arson investigations, which include tobacco stores, vehicles, gyms, restaurants and private addresses.
Investigators believe the situation is a result of criminal syndicates in conflict due to competition for profit derived from the illicit tobacco market.
The conflict includes both the physical placement of illicit tobacco into stores as well as demands for stores to sell the syndicate's illicit product and to pay a "tax" per week to operate.
Police believe the syndicates are comprised of personnel from Middle Eastern Organised Crime groups and Outlaw Motorcycle Gangs, who are then engaging local networked youth, street gangs and other low-level criminal to carry out the offending.
Detective Inspector Graham Banks, from the Lunar Taskforce, said police knew who was involved and are targeting those syndicates.
"Today's arrests are testament to that. They are a strong demonstration of state and Commonwealth agencies coming together to target the issue of illicit tobacco in every way possible," he said on Saturday.
"Those involved have a complete lack of regard for the harm they are inflicting on the community, and we think it's only a matter of time before someone is killed or seriously hurt in these reckless incidents."
Police are expected to provide a further update later on Saturday.
MELBOURNE'S LATEST ARSON ATTACKS:* A tobacco store on Lloyd Street in Moe which was targeted on December 25* A tobacco store on Main Street in Croydon which was targeted on December 25* A café on Lobelia Drive in Altona North which was targeted on Tuesday* A tobacco store on Pier Street in Altona targeted two nights in a row on Thursday and Friday* A tobacco store in Sunshine which was targeted on Friday
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