Fuel price hike to have knock-on effects
Fuel price hike to have knock-on effects
Enterprises providing transport services and construction materials planned to increase charges following an increase in fuel prices on the domestic market recently.
Petrol retail prices have continuously increased over the past few months, directly affecting transport firms. The domestic retail price of petroleum increased by VND319 to reach VND18,111 (79 US cents) per litre on September 20.
Representatives from taxi companies said transport costs could be increased by VND500 per kilometre in the future. The adjustment could make it harder for traditional taxi firms to compete with Uber and Grab.
Some transport businesses in Ha Noi told online newspaper vov.vn that they were preparing to increase transport costs by 7 per cent. However, the exact adjustment would be carefully calculated as petrol price was not stable. Transport firms would end up spending money and have to undertake complicated procedures for each adjustment.
Dau Xuan Ngoc, director of Thien Truong Trade, Tourism and Investment Company which provides transport services on Ha Noi-Thai Binh, Ha Noi-Nam Dinh and Ha Noi-Nghe An routes, said transport firms have not made profits with the current petrol price at over VND18,000 per litre.
He told the newspaper that they were trying to reduce some costs to make up for the hike in the petrol price while waiting for instructions from State management agencies such as the Department of Finance and the Department of Transport. They also asked the management board of bus stations to reduce service costs.
Prices of building materials have also been rising in Ha Noi. The price of sand was VND290,000 to VND420,000 per cu.m, increasing 5 per cent in the past two weeks.
Tran Ngoc Duc, a contractor in the city’s Hoang Mai District, said the price of cement had also risen by VND10,000 per 100 kilos.
The municipal Department of Industry and Trade has asked market watch offices to implement checks of the products to ensure there are timely solutions to stabilise the market and ensure supply.
Tran Thi Phuong Lan, the department’s deputy director, said the city had instructed businesses to participate in price stabilisation programmes of necessary products in the city.
