Monday, July 23 2018


Taxi fares cut amid fuel price drop

Update: June, 15/2012 - 09:14


Taxi cabs wait for customers on Nguyen Van Huyen Street in Ha Noi. A number of taxi firms are offering reduced fares after the third fuel price cut this month. — VNS Photo Truong Vi
HA NOI — Several taxi companies in the capital city have reduced fares following the third fuel price cut this year, but concerns have been raised over transport firms that have not lowered their prices.

The Vinasun taxi company was the first to slash its fares by VND500 (2 cents) per kilometre, while Mai Linh taxi reduced its prices by VND200-VND1,000 (0.9-4.5 cents) per km earlier this week.

After two price increases at the petrol pump totalling VND3,000 (14 cents) per litre early this year, many companies hiked fares by VND800-VND1,000 (3-4 cents) per km. However, three individual petrol price cuts this year totalling VND1,900 per litre did not translate into lower prices across the transport sector.

According to Chairman of the Viet Nam Transportation Association Nguyen Manh Hung, taxi firms would continue to lower their fares to raise competitiveness, but these cuts would be minimal as the recent petrol price cuts have not been substantial.

Hung said recent petrol price cuts have only seen taxi firms, and not long-distance buses, reduce fares. The association has urged all taxi and long-distance bus firms and goods transport enterprises to slash ticket prices, but could not force these price changes.

Chairman of the Huong Lua taxi company Dinh Quang Sau said his company currently charged between VND10,000 (US$0.5) and VND10,200 per km for the first 20 kilometres and VND9,000-VND9,200 beyond that.

He added that these fares were VND300-VND500 per km lower than that of other companies and that they would make further reductions, although not by much.

"The fuel price reduction is a good signal for the economy as it will help lure more customers and raise revenues," Sau said.

An official from Bac Ha transportation, which serves the Ha Noi – northern Bac Giang Province route, said his company has retained its VND25,000 one-way price, having not adjusted its fares when diesel prices increased by VND1,500 per litre to save costs.

Many bus firms said they would only change their ticket prices when diesel costs increased or reduced by 10 per cent or more.

In HCM City, a representative from Mien Dong Bus Station confirmed that enterprises were calculating new prices for the coming time. — VNS

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