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VietNamNews

Petrol price hike to have knock-on effect

Update: April, 22/2013 - 10:31

HA NOI (VNS)—Experts are predicting that the cost of everything from food to transportation will soon increase due to the recent rise in petrol prices.

Do Quoc Binh, Chairman of the Ha Noi Taxi Association, said that after the petrol price hike, some companies that belonged to the association had proposed raising fares. Such a move could prompt a huge loss of customers, but there was no other choice, Binh said, adding that prices were expected to increase from VND600 to 1,000 per kilometre.

Additionally, five bus companies plan to increase fares, according to Nguyen Hong Trung, director of the Ha Noi Bus Management Company.

Experts are predicting that the cost of everything from food to transportation will soon increase due to the recent rise in petrol prices.— Illustrative image

Nguyen Mai, owner of an online food shop, said her shippers asked for higher fees just after the hike was announced - meaning she had to ask her customers in turn to pay higher prices, for which she received many complaints.

Vu Vinh Phu chairman of the Ha Noi Supermarket Association, said that in the first three months purchasing power was too weak – 1 per cent of what it was last year. Higher shipping fees and higher production costs would drive up prices, causing supermarkets trouble, he said.

In HCM City, VINATEX Supermarket suppliers asked for a 5 per cent price increase due to the petrol price hike. Similar requests were sent to Lotte Mart and Maximark Cong Hoa Supermarket.

And Nguyen Thi Lan, who runs a grocery store on Doi Can Street in the capital, reports fewer customers due to the higher prices.

The recent rainy weather also increased vegetable prices in most traditional markets in Ha Noi by VND1,000- 5,000 per kilogram or bunch. Meanwhile, the current epidemic threat from China has driven up the price of local chicken by VND10,000-20,000 per kilo.

Compounding the problem, Viet Nam National Coal and Mineral Industries Group (Vinacomin) recently proposed raising the price of material coal for the electricity industry, which would cause the electricity price to go up and all other prices to increase as well. — VNS



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