- Petrol prices drop as part of latest review
- Domestic retail petrol prices hit seven-year peak
To Quang Hoc, director of Phiet Hoc Co., Ltd, a transport unit operating on the Hanoi - Thai Binh route, revealed that the firm has recently scratched its head as it strives to devise a proper business plan amid rising fuel prices and high input costs.
With petrol accounting for between 30% and 40% of the transportation unit price, high input fuel prices are set to affect transportation costs, thereby becoming a real nightmare for the transport sector, he noted.
Concurring with this viewpoint, Do Van Bang, director of Minh Thanh Phat Co. Ltd., pointed out that the price hike plus the adverse impact of the pandemic has been dealing a real blow to his company, pushing it on the brink of bankruptcy.
Khuc Huu Thanh Hai, director of Dat Cang Transport and Trading Service JSC., said passenger transport firms have suffered a string of heavy losses for several months, adding that the option of rising ticket prices is not feasible, particularly as people limit their travel due to fears surrounding the pandemic.
Nguyen Bich Lam, former general director of the General Statistics Office, pointed to the fact that the Vietnamese economy depends heavily on imported raw materials, and when petrol prices increase by 10%, the country’s GDP will decrease by roughly 0.5%, thus significantly affecting economic growth.
As the country is on its economic recovery track, he analyzed rising petrol prices will lead to an increase in the price index of all other industries, especially the transport and logistics sectors, affecting production costs, the price of domestic consumer goods, and the competitive advantages of enterprises in the end.
Economist Ngo Tri Long also stated that despite the recent pandemic containment efforts coupled with the economy’s rebound, escalating petrol prices have continuously put significant pressure on economic recovery.
He said Vietnam can only stabilise the domestic petrol prices by adjusting taxes and price stabilisation fund, of which only environmental protection tax and excise tax can be reduced.
