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Sarajevo Times > Blog > BUSINESS > Will the increase in Electricity Prices lead to a chain Price increase again?
BUSINESS

Will the increase in Electricity Prices lead to a chain Price increase again?

Published: June 28, 2024
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The meeting of the Regulatory Agency for Electricity of FBiH (FERK) at which a 10 percent increase in the price of electricity will be considered will be held on Friday, June 28. The increase in the price of electricity in our country will ultimately lead to an increase in the price of goods and services, as it has always been until now.

Namely, practice has shown that prices always rose when there was an increase in the price of fuel or electricity.

However, the sad fact is that the cheapening of fuel did not lead to a drop in the prices of products that became more expensive precisely because of the “tracking of fuel prices”.

Klix.ba talked about this topic with Murisa Marić, executive director of the Association of Don Citizens from Prijedor.

“We have witnessed that when fuel prices go up, the prices of basic foodstuffs also rise, which is the best for consumers. On the other hand, when prices drop, there is no reaction from any producer. As for electricity, certainly according to “For us consumers, as long as we have electricity for export, there are no reasons for price increases, and the state should protect its citizens from price increases,” Marić said.

She says that it is still too early to say how the electricity price increase will affect other prices, that is, in what proportion the price increase will occur.

“It’s not just electricity, then, for example, the price of water will also increase, because the Water and Sewerage Department will say that the pumps work on electricity. It’s another chain reaction and I think that there should be no increase in the price of electricity,” points out Marić.

She says that the citizens of BiH are facing a difficult period if there is an increase in prices.

Earlier, the general director of Elektoprivreda BiH Sanel Buljubasic explained the request for a price increase and said that inputs are constantly increasing in price, and electricity has had the same price for 10 years.

Almost three thousand marks, is the amount of the consumer basket for the month of April, while pensions, although they have been increased in recent months, cannot can catch the extremely fast train of price increases.

Increases in pensions, such as occurred in the past period from 10 to 50 marks, will mathematically hardly cover the already modest needs of pensioners. Although the associations that represent them do not give up the methods of adequate assistance, apparently there is no money in the entity budgets for such needs, at least for now.

Although we talk about price increases almost every day, it is impossible to reach them. According to the latest available data, which refer to the month of April 2024, the consumer basket amounted to a dizzying 2950.10 marks. Unattainable even for those who, according to BiH standards enjoy a luxurious salary.

And now imagine that with 573.53 marks, which is the minimum pension in the Federation, you have to survive for a month. Buy medicine, pay taxes, and obviously what’s left for food. Even pensioners in the Republika Srpska with a minimum pension of 601.35 marks do not enjoy a better position.

Two federations of pensioners’ associations in the Federation of Bosnia and Herzegovina held a meeting with Prime Minister Nermin Nikšić in recent days.

They say that they came out with demands for a better financial position of pensioners, but that they have not been adopted so far. Pensioners in Republika Srpska also hope for an extraordinary increase in pensions by the end of the year. Both entity governments expressed their readiness to find the best possible solutions, BHRT writes.

HASO HALILOVIĆ, Association of Pensioners FBiH

“The first conclusion is that the payment of a one-time financial aid will be provided by rebalancing the budget, that we will agree on the amount in the following talks. The second conclusion is that the budget rebalancing will provide increased funds in the amount of one million marks for the rehabilitation of pensioners.”

Economists have long been pointing out the illogicality of price increases that have befallen Bosnia and Herzegovina’s citizens, and which pensioners feel the most.

ZORAN PAVLOVIĆ, economist

“The weight of the economic situation, I would say management and companies and authorities must share with citizens, because it is not right that citizens have to pay for everything, and that those in high positions in management have very high salaries and benefits.”

According to Zoran Pavlović, the citizens cannot be the only ones who will bear the burden of rising prices on their backs. He blames everything on the ruling policies that did not come up with an adequate solution.

– “This is a fight for survival. They have no choice but to dig through the containers and search.”
– “What you need is bought by the gram, from day to day.”
– “Money is not important. No matter how much money you get, it is not enough for you.”
– “Pensioners are really the most vulnerable category.”

Revenues of Banks in BiH exceeded 1 billion BAM
Take a Look at Most Expensive Items imported to BiH this Year
Works on subsection Vlakovo-Lepenica begin next week
Representatives of the IMF explained why they insist on the Increase of Excises on Fuel
Prozor-Rama Municipality introduced free Public Transport for all its Residents
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