AGO looks into water price hikes

The Attorney General’s Office yesterday said it would look into the possibility that local water companies might have connived to raise their product’s prices.

CNMI consumer counsel Brian Caldwell said an investigation is proper to establish whether or not anti-trust and consumer laws have been violated.

“We’re definitely interested in looking into it,” Caldwell said. “If the allegations are true, it [collusion to hike water prices] would constitute a violation of anti-trust laws in the CNMI. We will investigate the matter.”

Other water companies also disclosed plans to raise prices of 5-gallon bottled water following price hike decisions made by at least three water firms—Saipan Ice, S.T.a.R. Water and Marianas Ice and Water Co.

JG Sablan Ice & Water said it would double the store price of bottled water to $2 beginning Monday. The company said it was still in the process of reaching a decision as to when to raise the product’s delivery price to $2.50 from the present $1.50.

“All the water companies have the same prices,” said JG Sablan’s acting manager, Ando Cabrera.

A staff at the company who requested anonymity confirmed that water company representatives met last Saturday at the Canton restaurant in Garapan to discuss, among other things, plans to hike water prices.

The staff said, however, that there was no agreement reached among the water company representatives, adding that each firm retains the prerogative to adjust their prices.

“There was no agreement that we would increase prices at the same time. The decision is each company’s prerogative. The public will understand,” the staff added.

The staff cited the increase in production cost as reason behind JG Sablan’s decision to increase water prices. Contributory factors, the staff said, included increases in the costs of fuel, reverse osmosis equipment maintenance, freight, and supplies.

Diamond Ice & Water said it has not decided yet as to whether or not it would increase prices of bottled water. When reached by telephone yesterday, a staff who identified himself as the company’s manager refused to give his name and hung up the phone.

An official of another water company earlier mentioned about the meeting by water firm representatives about the price adjustments. According to him, only the representative of one water company, Swift, did not attend the meeting. There are some 17 water companies in the CNMI.

Marianas Ice and Water has raised the price of bottled water from a dollar to $1.50 since Tuesday. The price of delivered bottled water has also increased to $2.50 from $2.

S.T.a.R. Water has decided to double the store price of 5-gallon bottled water to $2—as well as delivery price to retail stores at the same rate. Beginning June 21, the company would hike the price of bottled water delivered to houses to $2.50, which would reflect a $1-increase.

S.T.a.R. earlier said it has been mulling the price increases since some months ago, citing the impact of higher fuel costs on the business. The company also noted the upsurge in prices of supplies necessary to maintain the company’s Japanese-made reverse osmosis equipment—chemicals, module filter, R.O. membrane, etc.—and the increase in airfreight costs. S.T.a.R. also mentioned higher cost of compliance with government agency regulations.

Saipan Ice has adjusted the retail store price of 5-gallon bottled water from $1 to $2 beginning Tuesday. Saipan Ice vice president Ador Songcuan said the company would also adjust prices of the product for delivery orders to up to $3 possibly this week, higher than the previous overall average price of $1.55.

Despite implementing cost-cutting measures, Songcuan said the series of fuel price hikes jacked up the company’s production and freight costs.

Saipan Ice’s fuel cost in May reached $7,200, much higher than the monthly total of up to $5,500 last year, reflecting a 40-percent increase. Songcuan added that freight cost for a 40-footer container van has increased by almost double from $3,800 to $7,200.

Mobil has raised gas prices in the CNMI six times since the beginning of the year for a cumulative gallon price adjustment of 27 cents. It first raised its pump prices by 3 cents, and then 4 cents, before taking on four rounds of 5-cent adjustments.

Shell has raised retail fuel prices five times since January for a cumulative price adjustment of 25 cents per gallon. It first raised gallon prices by 7 cents in January, before increasing them again by 5 cents three times, and then 3 cents.