Saturday, 05/03/2011 11:48

Transport firms respond to high fuel costs

Transport operators in HCM City have increased rates by 15 to 20 per cent following last Thursday's hike in fuel prices.

More than 100 members of the HCM City Cargo Transport Association had effected the tariff hikes, Thai Van Chung, its General Secretary, said.

After petrol and diesel prices increased by 20 per cent, transport operators needed at least a 15 per cent hike to break even since fuel accounts for 40-50 per cent of road transporters' costs, he said, adding rising prices of auto spares were also to blame for the tariff hikes.

More than 30 taxi firms operating a total of 10,000 taxis have sought permission for fare hikes of 10-15 per cent, according to the HCM City Taxi Association.

Two of them had completed the formalities required to get approval for a 12 per cent increase in fares from VND12,500 per kilometre to VND14,000, Le Trung Tinh, Head of the Transport Management Office, said.

The Mien Dong Bus Station said 10 firms operating inter-provincial services had registered new fares that are 15-20 per cent higher.

At the Mien Tay Bus Station, two have hiked fares by 18 per cent.

The HCM City Alliance of Transport Co-operatives planned to hike fares on non-subsidised buses on 10 routes by 15 per cent, general director Phung Dang Hai said. Nearly 150 buses run on these routes.

But he warned that fare hikes should be carefully considered in order not to scare people away from public transport.

vietnamnews

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