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Petrol price hike may flow on

Released at: 23:00, 06/05/2015

Petrol price hike may flow on

Price rise creates concern among businesses and the community.

by Quynh Nguyen

As soon as the petrol price increased at 9pm on May 5, by VND2,000 ($0.09) to VND19,230 ($0.8) per liter, many taxi companies began preparing to also increase their charges.

According to Mr. Do Quoc Binh, Chairman of the Hanoi Taxi Association, with the petrol price standing at nearly $1 per liter it’s inevitable that taxi fares will also rise. “The extent of the increase will depend on each company,” he said. “Some, though, may leave their fare structure unchanged and bear losses to remain competitive.”

Mr. Nguyen Cong Hung, Deputy Director of the North East branch of the Mai Linh Group, said that although the petrol price rose sharply the taxi company does not yet intend to raise its fares. He believes that, in the context of a fiercely competitive environment, careful calculations needs to be made.

Many people are also concerned that the price of goods and services will be heading upwards. “Each month I spend $45 on petrol and this price rise will add $5 a month to my fuel bill,” one office worker said. “But my biggest worry is that the price of everything will go up.”

This is the second adjustment to the petrol price this year, which has a tremendous impact on all transport enterprises. Most companies, however, need time to consider their next move.

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