Transport fees remain despite fuel price cuts
On September 3, the Ministry of Industry and Trade requested petrol traders to lower prices of 92 octane petrol by VND1,198 per litre along with cutting prices for other types of fuel. Several experts said that it was necessary to tighten control over transport fees or even fine firms that delay cutting their charges.
They commented that authorities can control transportation fees but nothing had been done despite urging from the finance, and industry and trade ministries.
The situation is replicated across the country. “We’ve requested freight companies and bus firms to lower fees but they proposed to delay any move until after National Day,” said Nguyen Hong Ky, director of the Nghe An provincial Department of Transport.
Dang Van Luong, acting director of Lao Cai provincial Department of Transport said they have requested the Department of Finance to co-ordinate in requesting transport firms to cut the fees.
Nguyen Thi Binh, an economist who works at the Vietnam-Germany University, suspected that transport firms may have colluded not to lower prices. The Ministry of Industry and Trade’s Competition Management should intervene but they have yet to take action.
“Petrol prices have decreased by 10% and it’s obvious that transport fees should be lowered. It’s unacceptable that the fees have remained unchanged. We need to clarify which enterprises have cut fees and which have not,” said Than Van Thanh, vice chairman of the Vietnam Association of Transportation.
He added that petrol prices fluctuate regularly but it’s unfair that fuel traders are enjoying profits despite their inefficient operations.
“Our survey found that fuel account for 40% of transport fees, so the fees must be lower when fuel prices are cut,” Binh said.
She proposed that road hauliers and bus firms must make up a list of elements that are included in their fees. Otherwise, they would be suspected of having evaded taxes.
Associate Prof. cum Dr. Tran Dinh Thien, director of the Vietnam Institute of Economics, said, “The finance, and industry and trade should be held accountable for the lack of action on lowering transportation fees.”
After the Ministry of Finance asked for tighter control over road transportation fees, the Ministry of Transport requested departments of transport at localities nationwide to intensify supervision and report their findings before September 30.
The Ministry of Transport’s Department of Transportation in co-ordination with the Ministry of Finance’s General Road Administration and Department of Price Management must make report before October 10.