Transport costs rise as fuel prices surge

March, 18/2022 - 07:46

The sharp rise in gasoline prices is pushing up transport costs and thus fares, bus operators said.

 

Containers are loaded at the Tân Cảng- Cát Lái Terminal in HCM City. — VNS Photo Thu Hằng

HCM CITY — The sharp rise in gasoline prices is pushing up transport costs and thus fares, bus operators said.

Eleven transport businesses operating at the Miền Đông (Eastern) bus station have announced a fare hike of 20 per cent starting at the end of this month, Nguyễn Lâm Hải, head of the station’s planning department, said.

Operators have suffered losses as a result of a sharp drop in the number of commuters and the relentless rise in fuel prices, he said.

The number of passengers has dropped by half this year from pre-pandemic levels, he said.

Operators at the Miền Tây (Western) coach station are also likely to hike fares.

Lê Thị Đoan Trinh, human resources director at GHN Express, a provider of nation-wide express delivery services, said the increase in gasoline prices has added around VNĐ2 billion (US$87,700) to the operation costs.

It is bearing the rising costs to maintain a competitive pricing, Trinh said.

Sài Gòn New Port Corporation has announced that it would increase container freight rates by 10-30 per cent from April 1.

The rising fuel prices are pushing up the costs of freight, loading and unloading, forcing it to raise the rates, it said in a statement released on Sunday.

Container truck rates will rise by 10 per cent between Đồng Nai Port and Cát Lái Port, and 30 per cent between inland container depots to the Tân Cảng- Cát Lái Terminal.

A spokesperson for the HCM City Cargo Transport Association said its members would increase freight rates in the next few days. 

Financial support

The Ministry of Transport expects to provide various kinds of support to help transport businesses, which have been hit hard by the soaring petroleum prices, survive.

It also wants the Government to direct related agencies to provide credit at conducive interest rates and tenors to airlines.

It said rollover of loan repayments and interest rate reductions are needed for inland waterways transport operators.

It wants Government agencies and local authorities to reduce a number of fees and charges.

Inland water and marine transport businesses long for want the environment tax on petroleum to be cut from March until global crude oil prices fall under US$80 a barrel.

They also want the special consumption tax reduced to 5-6 per cent from the current 10 per cent until the end of the second quarter. — VNS

 

 

 

 

 

 

 

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