Passengers at Nuoc Ngam bus station in Hanoi. Most fixed-route transport firms have charged their passengers more to offset higher fuel costs. (Photo: VNA) According to the ministry, fuel prices have increased by 4,625-7,030 VND perlitre (0.2-0.3 USD), or 24.91-39.56 percent, after six price adjustment periodssince early 2022.
Due to the price hikes, fuel costs have grown to an enormous proportion of thetotal costs of roadway transport firms, accounting for 40-45 percent of theirbills. The firms had no choice but to seek fare rises.
The situation is not better for airlines, whose fuel costs account for39.5 percent of their total costs. The MoT estimated that airline fuelcosts 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 torecover.
Meanwhile, railway firms have decided to keep their fares unchanged to attractmore 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 coverhigher 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 torise,” the report said.
The MoT has urged agencies and authorities to strictly comply with theinstructions of Deputy Prime Minister Le Minh Khai, head of the SteeringCommittee on Price Management, to keep inflation in check.
Notably, agencies and authorities must not adjust the prices of State-managedgoods and services, to ease the cost burden on individuals and firms.
They are also required to keep a close watch on transport firms to ensurethat they raise fares reasonably, with any price gougingfacing a severe penalty.
The ministry advised the Prime Minister to consider removing or reducinginfrastructure fees related to rail, roads and ports, value-added tax ontransport services and corporate income tax to mitigate the woes of transportfirms.
Regarding struggling airlines, the MoT urged agencies and authorities toimplement favourable price policies to help airlines cover higher costs.
The ministry recommends that transport firms be put high on the list ofbeneficiaries of the economic recovery packages under Resolution 11./.
VNA
