Transport fees are expected to increase at least 5% after the Ministry of Finance decided to raise petrol and oil prices on August 13.
Transport fees rise following higher fuel costs
Petrol prices officially increased by VND1,100 per litre, while oil prices also went up between VND500-800 per litre.
This is the third rise in less than a month after increases of VND300-400 per litre on July 20 and a rise of between VND500-VND900 per litre on August 1. This is also the fifth increase so far this year, marking a VND5,400 per litre rise in petrol since the start of the year.
Transport firms have held urgent meetings to discuss their increased charges.
Thai Van Chung, Secretary of HCM City Transportation Association, said transport fees were affected by many different input factors, including fuel costs, interest rates and material costs, with fuel costs having the most substantial impact.
He said goods transport firms mostly use diesel, not petrol, however, and the price rise of VND500-800 per litre of oil is quite high for them, and so they would have to consider raising transport fees. But the specific rises would vary between companies.
Taxi companies are quite shocked at the price rise. Mai Linh Group has decided to amend tariffs in different areas in 53 cities and provinces where it operates.
The Hanoi Transportation Association also confirmed that taxi fares would be raised soon.
“Transport businesses must calculate all input factors, not only fuel costs. However, petrol and oil prices have been raised for three times in less than a month, therefore, the minimum transport price increase would be 5%,” said Bui Danh Lien, Chairman of the Hanoi Transportation Association.
It may well be unavoidable for taxi firms to raise prices, but the association has asked companies which run passenger transport services along fixed routes to wait until after National Day on September 2, Lien said, explaining that price increases took into account various factors. Therefore, if they decided to increase the rise during peak periods such as national holidays, it would be necessary for management agencies to speed up their procedures.
