HARRISBURG (TNS) — The new year is proving it’s hard to get away from price increases in Pennsylvania.
Tolls on the Pennsylvania Turnpike are going up. The gas tax went up. Higher prices for groceries certainly don’t help. It’s enough to drive you to drink — oh, and by the way, those prices are going up too.
The Pennsylvania Liquor Control Board is raising the prices on 3,554 of its most popular items by 4%, beginning on Jan. 15.
A spokesman cited the 40-year record-high inflation rate impacting manufacturers and retailers around the globe as the reason behind that decision.
“These increases will allow the PLCB to generate revenues needed to offset annual 8% increases in operating costs over the last four years, plus projected cost increases in the current year, related to personnel, distribution, leases, and credit card fees, among others,” said its spokesman Shawn Kelly.
He said the agency’s executives are authorized by its three-member board to set prices on products sold in the Fine Wine & Good Spirits stores although the board is fully supportive of the price hikes, Kelly said. He added the agency has resisted raising prices beyond vendor cost increases since 2019 despite cost increases related to the pandemic and inflation.
But Sen. Mike Regan, R-York County, is not happy about this decision to raise prices.
Regan, who served as chairman of the Senate Law & Justice Committee with oversight over the PLCB in the last legislative session, pointed out last year the agency reported record sales topping $3 billion.
“It’s a little perplexing,” he said. “For me, this goes back to why we should not have this monopolistic government-controlled system.”
He said private businesses would look internally to find ways to cut costs internally and “raising prices would be the last thing that would be on their list.” Regan also finds fault with the agency board’s decision to delegate decisions such as product rationing and price setting to its executives.
“The board should have to go on record and vote on these increases,” he said. “I’m a little afraid these decisions may ultimately be made by unelected bureaucrats with none or very little accountability to the public.”
Regan said this latest decision to hike prices on most products renews his interest in looking at privatizing the state-run liquor system.
“It’s a monopolistic government grab when inflation is hurting people the worse,” Regan said. “You’d think that’s when you would want to get creative if you want to stay competitive but they don’t have to be competitive. They are a monopoly.”
For those looking for a silver lining to the upcoming price boosts, there’s this. There are exceptions.
The price hike does not include the 5,600 one-time buys on seasonal and luxury items, the 2,700 items on clearance, 100 PA Proud items available in a few of its nearly 600 stores, special order products, and any of the 397 items on sale this month.
But a footnote on those January sale items, enjoy the sales price while it lasts. Those prices will be subject to the same price increase on their regular pricing, starting Jan. 30.
