Petrol prices down but transport costs stay fixed

The inspection team, consisting of members from the Department of Finance, Department of Transportation and Department of Taxation, found that only Taxi Gas Sai Gon Petrolimex Company had reduced its fees.

 The team reported that transportation companies increased their fees on average by 16.45 per cent when the petrol price increased from VND14,5000 ($9) to VND19,000 ($12) per litre. However, after four reductions in petrol prices, cutting the petrol price by a total of 11 per cent, there has been no matching reduction in fares charged to customers.

These transportation companies defended their unchanged rates, saying the small reductions of the petrol price of VND500 per litre each time brought them hardship.

Representatives of these companies said it would take time and cost money to change their rates. It would require them to change their procedures, contracts and to re-print tickets.

Taxi companies face challenges, when they have to change the notice in their taxis explaining their rates and have to check the odometer. It costs more than VND100,000 ($6) for this process.

Taxi Vinasun claims it needs about VND300 million ($18,000) to undergo this process for its fleet of 2,200 taxis.

The transportation companies are also afraid they will incur losses, if they go through this process to lower their rates now. P

etrol prices in the world market continue to drop and are lower than in Viet Nam, leading possibly to further petrol price reductions here. "Until the petrol price is stable, we will not reduce our fees," said Ta Long Hy, deputy general director of Viet Nam Anh Duong Joint Stock Company.

Transportation companies often set fees for at least three months, so that they are not affected by fluctuations in domestic petrol prices. For these reasons, transportation companies in HCM City claim they need more time to study the market.