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Modest diesel price decrease won’t help transport firms
Commenting on the diesel price decrease by VND450/litre announced yesterday by the Ministry of Finance, transport firms said that the decrease was not enough to put much of a dent in transportation costs for customers.
Nguyen Manh Hung, Chairman of the Vietnam Automobile Transport Association, said that the 3% decrease will lead to a dip in transportation costs of about 1.5%.
However, Hung said that despite the sliding diesel prices, passenger and cargo firms would not cut fees.
“It is because the procedures for adjusting fees are not a simple process. Besides, the decrease isn’t big enough to force fees lower,” he said, adding that the only respite from high diesel costs will be felt by the transport firms.
Meanwhile, Vu Van Tuyen, Chairman and General Director of Hoang Long Transport Company Ltd, said that he is considering bumping up what he charges.
Phan Huu Man, Chairman of Binh Minh Transport Cooperative, which has coaches running the Hanoi-Vinh route, said that his company did not raise fees following diesel price increases; therefore, he would not lower the fee because of the latest diesel price decrease.
“Passenger transport firms are facing too many difficulties. Hoang Long, for example, is incurring losses of VND3-5 billion a month. However, firms dare not raise charges because airfares and railway tickets have not increased yet,” Tuyen said.
Analysts said that diesel accounts for 50% of transport costs, and that transport firms would only make a profit if diesel decrease by another VND1, 000/litre.
VNN
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