Transport firms up charges amid mounting fuel prices
- 104
- Business
- 10:35 07/05/2022
DNHN - About 80-90 percent of fixed-route transport firms have adjusted their fares up by 10-15 percent to offset mounting fuel costs, according to a Ministry of Transport (MoT) report submitted to the Prime Minister, assessing the impact of higher fuel prices.
According to the ministry, fuel prices have increased by 4,625-7,030 VND per litre (0.2-0.3 USD), or 24.91-39.56 percent, after six price adjustment periods since early 2022.
Due to the price hikes, fuel costs have grown to an enormous proportion of the total costs of roadway transport firms, accounting for 40-45 percent of their bills. The firms had no choice but to seek fare rises.
The situation is not better for airlines, whose fuel costs account for 39.5 percent of their total costs. The MoT estimated that airline fuel costs in April climbed by 84 percent compared to September 2015, effectively eroding their profitability.
The Civil Aviation Authority of Vietnam has sent an appeal to the MoT, requesting adjustments upward on ceiling airfares to help airlines to recover.
Meanwhile, railway firms have decided to keep their fares unchanged to attract more passengers and stick to socio-economic targets set by railway authorities. Rail freight rates rose slightly by 3-5 percent.
A few shipping lines have begun to collect fuel surcharges since March to cover higher costs, whereas others have not hiked their fares.
“Mounting fuel prices have not passed on to waterway fares so far. However, the situation may change in the future as fuel prices continue to rise,” the report said.
The MoT has urged agencies and authorities to strictly comply with the instructions of Deputy Prime Minister Le Minh Khai, head of the Steering Committee on Price Management, to keep inflation in check.
Notably, agencies and authorities must not adjust the prices of State-managed goods and services, to ease the cost burden on individuals and firms.
They are also required to keep a close watch on transport firms to ensure that they raise fares reasonably, with any price gouging facing a severe penalty.
The ministry advised the Prime Minister to consider removing or reducing infrastructure fees related to rail, roads and ports, value-added tax on transport services and corporate income tax to mitigate the woes of transport firms.
Regarding struggling airlines, the MoT urged agencies and authorities to implement favourable price policies to help airlines cover higher costs.
The ministry recommends that transport firms be put high on the list of beneficiaries of the economic recovery packages under Resolution 11.
VNA
Related news
#fuel prices
Solutions to curb price increase in Vietnam
The economic and social situation in the first 5 months of 2024 has continued to show positive trends, but the average CPI for this period has increased by 4.03%. Therefore, controlling inflation remains a key goal and challenge for the government.
The exodus of fuel distribution and retail companies: Reasons behind the withdrawal
According to the Ministry of Industry and Trade, as many as 16 fuel companies have requested to return their distribution licenses since the beginning of the year.
Đọc thêm Business
Dongtam Group partners with CS Wind Corp to build a wind power equipment factory
Dong Tam Group (DTG) and CS Wind Corporation (CS WIND) have officially signed a Memorandum of Understanding (MOU).
Young entrepreneurs innovating but must ensure stable business foundations
"The world is undergoing significant changes, bringing both opportunities and challenges for businesses, especially in fields such as artificial intelligence, international trade, and investment"
Why is Vietnam always attractive to foreign businesses?
Vietnam attracts foreign businesses thanks to its favorable investment environment, abundant labor, and competitive costs. Open-door policies and free trade agreements also enhance the country's appeal to global investors.
Apartment prices continue to rise far beyond workers' incomes
Apartment prices continue to rise sharply, increasingly out of reach for workers' incomes. This gap not only creates significant financial pressure but also makes homeownership increasingly difficult for the majority of people.
The stock market faces increasing selling pressure, VN-Index sank into the red
The strong selling pressure across the market, especially in the blue-chip stocks, has caused the VN-Index to drop sharply, even falling below the 1,270-point mark at times.
VREC and HREC create opportunities for member businesses to connect with Nippon Paint Vietnam
Recently, at the headquarters of Nippon Paint Vietnam, the Vietnam Real Estate Club (VREC) and the Ho Chi Minh City Real Estate Club (HREC) successfully organized a networking event for member businesses.
Cash flow real estate: New investment trend in 2024
Cash flow real estate has become an investment trend in 2024 due to its stable profitability from leasing and business operations. Interest in this type of real estate demonstrates the demand for sustainable profits in an uncertain economic context.
Is the gold price stabilization policy truly effective?
Dr. Bùi Duy Tùng, an Economics lecturer at RMIT University, assesses the pros and cons of the gold price stabilization policies implemented by the State Bank of Vietnam (SBV) in recent times.
Why is there a need for a development proposal in the field of cultural industries?
In the context of globalization and the booming creative economy, cultural industries are increasingly important in national development strategies. Vietnam needs a development proposal in this field to tap into its potential.
Mastering Real Estate Business Law to be ready for the next growth cycle
In the context of the changing real estate market alongside new legal regulations, understanding the Real Estate Business Law is a crucial factor for businesses and investors to seize opportunities and prepare well for the new cycle.