Headline: Rising Cost of Living in New York City Adds to Financial Burden for Residents
Subtitle: Increases in Electricity, Gas, Transportation, and More Affect Daily Life Expenses
New York, the most expensive city to live in the US and one of the most expensive in the world, has become even more burdensome for residents this month. The city is experiencing coinciding increases in rates for electricity, gas, subways, trains, buses, and select bridges and tunnels. These rising costs are also impacting residents in neighboring areas.
The first blow came from Con Edison, which raised gas prices by 8.4% and electricity rates by 9.1% as soon as the month began, on August 1st. These increases will be followed by additional hikes in January of 2024 and 2025. Con Edison supplies electricity to most of Westchester County and all of New York City, except for a small part of Queens. The company also provides gas in Manhattan and the Bronx.
Adding to the already substantial increases, New Yorkers were shocked at the beginning of 2022 with electric bills rising by up to 300%, far surpassing the historical national inflation.
The second hit to residents’ pockets will come tomorrow when tolls on MTA bridges and tunnels increase at a higher percentage than expected. Metro and bus fares will also be raised on August 20th, compounding the financial strain. The last time tolls on MTA bridges and tunnels were raised was in 2021. Starting tomorrow, there will be different percentage increases. For example, tolls for cars using E-ZPass at major junctions will increase by approximately 6% to $6.94. Mail-in tolls for drivers without an E-ZPass will go up 10% to $11.19.
It’s important to note that E-ZPass MTA discounts only apply to drivers registered in New York. Drivers from New Jersey and other states using the E-ZPass system will have to pay the higher toll-by-mail rate unless they register their tags in New York.
Furthermore, bus and subway users will experience a 5.5% increase in fares as NYC Transit raises the base fare from $2.75 to $2.90. This marks the third blow to New Yorkers’ wallets this month. Public transportation prices in the city have not increased since 2015. Metro-North and LIRR rates are also expected to rise by approximately 4.3%. The price increase will impact all MetroCard options and express buses, which will have a fare of $7.
These rising costs come at a time when public transportation safety concerns rise, along with increased homelessness and fare evaders. The MTA faces annual losses of $690 million due to the growing number of people accessing the system without paying. Ironically, very few utilize the “Fair Fares” program offered by the city, which allows low-income New Yorkers to pay half the fare. This program also applies to students, people with disabilities, and individuals over 65 years old.
In addition to transportation costs, gasoline prices have also seen a minor increase in New York City. The median price for a regular gallon of gasoline was just over two cents above the state and national medians, according to The New York Times.
As the cost of living continues to rise in New York City, residents are facing an even greater financial burden. These increased expenses for electricity, gas, transportation, and, potentially, other consumption items like food and medical services, put additional strain on individuals and families trying to make ends meet in one of the world‘s most expensive cities.