Commodity prices rising following petro price hike

One day after the petrol price increases, dairy product sellers raised sale prices by several thousand dong per milk carton. The food shop on Cach Mang Thang Tam Road near Hoa Hung Market in HCM City is selling Dutch Lady 123 for 2,500 more per carton than previously, while Gain IQ has become 5,000 per carton more expensive.

At another food shop near Hoa Binh Market, the price of Ensure Gold has been raised by 4,000 dong per carton. Explaining the milk price increases, the owner of a grocery store on Dong Den road said that suppliers have raised wholesale prices.

“It is understandable why the milk prices have increased. The petrol price has increased, which has led to a transport fee increase,” she said.

Meanwhile, suppliers have said that retailers have spontaneously raised retail prices, reasoning the transport fee increase.

Truong Van Toan, Head of the Legal and Foreign Affairs Division of Dutch Lady, said that the company has not made any announcement about price increases.

Also citing the petrol price hike, some taxi firms, including Vinasun and Mai Linh, are also following necessary procedures to raise taxi fees by 500 dong per kilometer to 10,000-10,500 dong per kilometre, expected to be applied as of June 15.

Gas companies have also decided to raise gas prices as of June 15. Le Phuc Dai, General Director of Vinagas, said that the gas price has been raised by 5,000 dong per tank. Gia Dinh Gas, PetroVietnam and some other firms have also raised sale prices by 5,000 dong per tank to 193,000 dong.

Dai said that the company has to raise the sale price because the import price keeps rising since earlier this month. This is the second time gas firms raised the sale price. The price had been raised to 188,000 dong per kilogramme.

Dai said that the import gas price is expected to increase by $80 per tonne in July, which will lead domestic prices to increase by 15,000 dong per tank.

Construction material prices have seen prices increasing sharply. The owner of Anh Phat Construction Material Shop in HCM City said that the construction steel price has increased by 1,000 dong per kilogramme over last week.

“Though producers have not announced price increases, 1st class agents have spontaneously raised prices as they have added transport fees into the cost of products,” he said.

Minister of Planning and Investment Vo Hong Phuc, when speaking before the National Assembly on June 12, affirmed that high inflation would not return.

Phuc said that the Government has thoroughly discussed the issue. In order to ensure that high inflation will not return, the Prime Minister has asked to keep close watch over the monetary policies and take measures to prepare for commodity price increases in the world’s market.

“We have anticipated all things thay may possibly occur. As we have done so, the Government will surely have necessary measures to prevent high inflation from returning,” Phuc said.