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American Focus > Blog > World News > NYC congestion pricing to drive up the cost of beer: Another ‘nail in the coffin’
World News

NYC congestion pricing to drive up the cost of beer: Another ‘nail in the coffin’

Last updated: January 12, 2025 5:26 am
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NYC congestion pricing to drive up the cost of beer: Another ‘nail in the coffin’
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Beer Prices Set to Rise in Manhattan Due to Congestion Pricing

Beer lovers in New York City may soon have to dig a little deeper into their pockets as congestion pricing takes effect, causing a 13% increase in beer prices in some of Manhattan’s busiest neighborhoods.

Anheuser-Busch, the company behind popular brands like Budweiser, Michelob Ultra, Stella Artois, and Corona, has announced a $5 hike in keg prices for customers across the NYC area. This decision is in response to the added costs incurred by congestion pricing for deliveries in Manhattan.

Beer prices could go up as congestion pricing makes doing deliveries in Manhattan more expensive. Leonardo Munoz

Alcohol distributors are expected to follow suit and increase their fees to accommodate the congestion pricing impact. This means that bars may have to charge an extra dollar per pint to offset the higher costs.

Some beer enthusiasts are already expressing their concerns about the impending price hikes, with one Midtown drinker calling it “death by 1,000 cuts.” The increase in prices may even deter some customers from enjoying their favorite brews.

At Tile Bar in the East Village, Bartell says he drinks Bud because it’s inexpensive — but won’t if it goes up much in price. Leonardo Munoz

Bar owners are also feeling the pressure, with one lamenting that this move is another blow to the New York City hospitality industry. The rising costs of food and supplies, coupled with congestion pricing, are putting a strain on businesses.

As congestion pricing takes effect, various service providers are notifying their clients about price increases. Uniform and cleaning supply provider Cintas, for example, is implementing a price adjustment to offset the rising costs of doing business in NYC.

During peak congestion pricing hours, large trucks will have to pay $21.60 and small trucks will be charged $14.40. Christopher Sadowski

With the implementation of congestion pricing, drivers must now pay a fee to travel below 60th Street during peak hours. This move is part of Governor Kathy Hochul’s plan to fund MTA upgrades and address congestion and pollution in the city.

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Overall, the beer price hikes are just one example of how congestion pricing is impacting businesses and customers in Manhattan. The ripple effects of this initiative are being felt across various industries, prompting businesses to make tough decisions about passing on the costs to their customers.

TAGGED:beerCoffincongestionCostDrivenailNYCPricing
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