Price hikes on the bare essentials
Jan 12th, 2009 | By Captain Chaos | Category: NewspapersHealth, love and…money. The latter will probably be the most difficult wish to fulfil in this New Year. Rising prices, the cost of Christmas and more unemployment will be joined in 2009 by an increase in domestic bills such as water and electricity, as well as higher train, bus and taxi fares.
Most increases which are being imposed by companies and Town Halls are more than the rate of inflation at the close of the year, which the Ministry of Economy and Finance says is 2 per cent.
“The reason for this increase in Malaga is that the Town Hall did its calculations on the basis of the inflation rate in May,when it was 4.6 per cent. They haven’t taken into account the fall in the price of some products which has occurred since then”, explains Jesús Burgos, the president of the Malaga Consumers’ Union.
On top of these local increases, there are others which are set nationally such as the cost of rail travel, telephone charges, electricity and natural gas. In the heart of the economic crisis, prices are increasing on average by 0.6 per cent more than last year, when the cost of basic services went up by 3.8 per cent.
Urban bus services – An ordinary ticket will cost more than one euro in Malaga
Bus travel in Malaga city will see one of the highest fare increases this year. An ordinary ticket will cost 10 per cent more, at 1.10 euros. The City Hall says this is the first increase since 2007 and monthly season tickets and student cards are only going up by 6 per cent. Jesús Burgos says this rise is especially unfair as it has not taken into account the fall in fuel costs.
Taxis – The cost of getting into a taxi will rise to 3.48 euros
Taxi fares in Malaga are to rise by an average of 4.9 per cent, although this is still lower than the 7 per cent increase which the sector had requested because of the rise in fuel costs at the beginning of last year. The minimum fare will now be 3.48 euros instead of 3.32.
Trains – The AVE and suburban trains will also be more expensive
Renfe is increasing the price of its suburban tickets by 6.28 per cent from January 1st, while the high speed AVE and Long Distance fares are going up by 4 per cent. Tickets on medium distance routes are also rising by 5 per cent on normal trains (known as Regionales) and the ‘Avant’ trains which travel on the AVE lines. However, more discounts and special fares will be available.
Electricity and natural gas – No agreement on prices
Just a few days before the new year, the National Energy Commission (CNE) and the Ministry of Industry had still not agreed on the increase in the price of basic services, which are to rise by considerably more than the Retail Price Index, but it is certain that a bottle of butane gas is the only item whose cost will be reduced early in 2009. The CNE proposed an increase of 31 per cent for electricity, but the Ministry of Industry, taking into consideration the economic situation of the country, wants the increase to be limited to 3.75 per cent. This modification will cost domestic consumers on average between 90 céntimos and 1.1 euros more per month on their electricity bills. There is also disagreement over the price of natual gas. The CNE recommends an increase of 2.2 per cent, while the Ministry of Industry proposed a rise of 3.79 per cent.
Water – Turning on a tap will be 5 per cent more expensive
Turning on a tap will cost people in Malaga city 5 per cent more from 1st January. The Emasa water company is putting up its charges, although discounts will apply to consumers who are most economical. The increase is higher than for any other municipal service, most of which are going up by 4.6 per cent. The reason given is that Emasa’s income has dropped because people are using less water as a result of the publicity campaigns and measures imposed during the drought.
Telephones -The connection charge is going up by 4 per cent
Telefónica is also putting its charges up by 4 per cent. The obligatory charge goes up from 14.03 euros to 14.609 euros (4.12 per cent). The connection charge for metropolitan calls will rise from 6.9 céntimos to7.24 (4.58 per cent) and calls will cost 1.44 euros per minute instead of 1.38 euros (4.37%).
Tobacco – Smokers will pay more per packet
Altadis is putting its tobacco prices up by an average of 4 per cent in 2009, more than one point above the inflation rate registered in November. A pack of cigarettes which is distributed by this company will cost ten céntimos more from January 1st.
Gas bottles: the only good news
With so many price increases about to take effect, there is only one good piece of news for the wallets of people in Malaga this New Year, and it is orange-coloured.
The maximum price of a bottle of butane gas was reduced again on January 1st, to 13.50 euros which is 26 céntimos less than the previous price. This is a reduction of 1.88 per cent and will be a saving of 5.76 euros a year for those who use an average of two gas bottles a month in their homes or businesses.
This is the second consecutive drop in the price of a bottle of butane gas, as it went down by 34 céntimos in July last year. Despite this latest reduction, the present price is still the third highest in its history.
The record high was between April and July 2008, when a bottle of butane gas cost 14.10 euros.
The latest drop in price is due to a reduction in the cost of the prime material, which is now 22.83 dollars per tonne.