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Fuel prices fail to dent taxi fares

Update: June, 11/2012 - 11:14

 

A driver with Mai Linh taxi company which is still starting fares at VND13,500 ($0.64). Transport companies have yet to adjust their fares even though retail fuel prices fell three times during the past month. — VNA/VNS Photo The Duyet
HCM CITY – Transport enterprises have not adjusted their fares even though retail prices of diesel and petrol have fallen by VND1,400-1,900 (US$.07-.09) per litre since early last month, according to the Tuoi Tre (Youth) newspaper.

Ngo Tri Long, an economic expert, told the newspaper that petrol and diesel accounted for 35-40 per cent of transport costs and that companies must reduce their prices.

According to state law, transport services are part of a list of products and services whose prices should remain stable.

To keep their profits at the highest level, companies are ignoring consumer benefits, according to Long.

Long also said that companies should be strictly supervised by the Ministry of Finance if they do not lower prices.

However, Bui Danh Lien, president of the Ha Noi Transport Association, said that such companies could not reduce prices even though fuel costs had fallen.

Lien explained that the haulage business sector was facing a lot of difficulties due to increasing spending on several items, such as a five-per-cent increase on a coach station fee and higher wages for drivers as well.

In addition, the volume of commuters had fallen significantly compared to the same period last year, according to Lien.

Dinh Van Sau, chairman of the board of directors of the Ha Noi-based Huong Lua Taxi Company, said it might consider reducing taxi prices in the near future.

The HCM City Cargo Transport Association also revealed that it had not received any reports from its members on the reduction of transport prices.

Some enterprises that provide container services from HCM City to neighboring provinces such as Binh Duong, Dong Nai and Tay Ninh said they were figuring out all the costs to see if they could reduce prices.

If possible, they would lower costs by VND50,000 (US$2.4) per trip, they said. — VNS

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