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Bottled water prices jump
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Posted on Jun 10 2008
Prices for bottled water on Saipan are going up, the latest sign of the toll rising utility costs, gas prices and the recent minimum wage hike are taking on local businesses.
The Saipan Ice and Water Company on June 1 raised the price of its 5 gallon water jugs by 25 cents, or 5 cents per gallon, the first time the company has increased its prices in years, according to owner Anthony Pelligrino.
Meanwhile, one of Pelligrino’s local competitors, Star Water, is poised to boost the price of water delivery by 50 cents for some customers.
Pelligrino attributed the price jump primarily to the high cost of electricity on Saipan, saying recent rate changes have meant $30,000 electric bills. Surging gas prices are also costing his company thousands, yet the spike in the local minimum wage earlier this month is also taking a heavy toll.
“It’s all those factors put together,” Pelligrino said. “We haven’t had to do a price increase in many years.”
At Star Water, manager Ronny Bunao reported similar problems.
“Everything is up,” he said, noting that rising gas prices in particular have placed a heavy cost on delivering water to customers. “The economic situation on Saipan has made things very difficult.”
Bunao said that Star Water is preparing to raise the cost of its deliveries later this month, though the price could largely depend on the distance of the customer. Now at $2 for many deliveries, this price could raise to $2.50.
For the moment, however, Bunao said the company’s prices remain the same.
