Fuel price hike to drive up transport costs
Taxis in Ha Noi. The cost of transport is expected to rise following an increase in petrol prices on Thursday. Nguyen Manh Hung, chairman of the Viet Nam Auto Transport Association, said the increased petrol costs would translate into a 15-per cent price hike in the cost of transport. — VNA/VNS Photo Truong Vi
HA NOI — The cost of land transport is expected to rise following an increase in petrol and oil retail prices on Thursday.
Nguyen Manh Hung, chairman of the Viet Nam Auto Transport Association, said according to the association's calculations, the increased cost of petrol and oil would translate into a 15 per cent price hike for land transport.
The devaluation of the Vietnamese dong against the US dollar would also have an indirect effect on prices, Hung said, adding that increased prices were inevitable.
Transport enterprises must carefully calculate how much they would raise prices in order to avoid operating at a loss or losing customers, Hung said.
Ta Long Hy, chairman of the HCM City Taxi Association and Deputy General Director of Vinasun Taxi, said with the increase of VND2,900 per litre of petrol, taxi charges would increase by 8-10 per cent.
Thai Van Chung, general secretary of the HCM City Cargo Transport Association, said cargo enterprises planned to increase prices by 15-20 per cent.
Huynh Hai Oanh, deputy director of the Western Bus Station, said large coach companies would be able to retain customers due to their reputations, but the increase would be a challenge for smaller firms.
Meanwhile, Bui Danh Lien, chairman of the Ha Noi Transport Association, expected prices in Ha Noi to increase by at least seven per cent in the near future.
The increased charges are expected to be applied to the domestic market within the next two weeks, following approval from the Ministry of Finance, Lien said.
The increase in petrol and oil prices will have a knock on effect on the costs of other goods, including building materials and consumer goods.
Do Duy Thai, deputy general director of Viet Steel Trading Ltd Company, said his company's steel prices would increase by VND400,000 per tonne due to the exchange rate and high electricity and petrol prices.
Le Thi Thanh Lam, deputy director of SG Fisco Joint Stock Company said the cost of transporting his company's products to the north would increase by 30 per cent and retail prices were likely to follow suit.
Saigon Co.op Mart will try and come to an agreement with transport enterprises over a reasonable increase in distribution costs in the interests of our customers, the supermarket and also the transport enterprises, said Tran Thi Mai Trang, a representative from Saigon Co.op Mart.
On Thursday, the domestic retail price jumped by between VND2,110 and VND3,550 per litre to VND19,300 for petrol, to VND18,300 for diesel oil, to VND18,200 for kerosene and to VND14,800 for fuel oil. — VNS