New Mexicans get more bad news amid crippling inflation crisis
New Mexico residents are bracing for a rise in their gas bills following the New Mexico Public Regulation Commission’s recent approval of a rate increase for New Mexico Gas Co. The decision, part of a settlement agreement, will see the average residential bill—based on usage of 53 therms per month—increase by $4.21, or 7%, starting October 1.
This is less than the gas company’s initial request, which sought a more significant rate hike to cover a $30 million revenue deficiency; the final settlement brought this down by $19 million.
Commissioner Gabriel Aguilera expressed satisfaction with the settlement, stating, “I’m happy here with how the parties were able to reach an agreement.” However, the decision comes amidst broader economic pressures that are already straining household budgets.
New Mexico’s residents are facing increased costs across the board, particularly in essential areas like groceries and gasoline. Gas prices have seen a significant rise, with the cost per gallon for regular unleaded gasoline averaging $3.60 in 2024, reflecting a broader trend of rising energy costs nationwide. This marks a considerable increase from previous years, exacerbating the financial burden on consumers.
Grocery prices have also climbed, with the latest data indicating a 0.2% increase from May to June 2024. Year-over-year, grocery costs have risen by 1.1%, contributing to a broader trend of food inflation that has seen prices increase by 26% since 2020. This situation is particularly challenging for low-income households, who are disproportionately affected by rising costs for everyday necessities.
The cumulative effect of these increases is placing significant stress on New Mexico’s residents, many of whom are already struggling in an inflationary economy under the Joe Biden/Kamala Harris administration. Though lower than initially proposed, the approved gas rate hike adds another layer of financial pressure.
As Public Regulation Commissioner Pat O’Connell noted, while the settlement may work in this instance, the broader economic context necessitates careful consideration of future rate adjustments and their impacts on consumers.
These rising costs underscore the importance of effective regulatory oversight and support measures to help mitigate the economic burden on New Mexicans.
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