Even though petrol prices have fallen four times since the beginning of the year, haulage rates of most transport companies in Ho Chi Minh City have remained unchanged.
Petrol price fell for the fourth time this year a week back, but many of the larger taxi companies in the city have yet to react and reduce fares.
Only few taxi companies have reduced fares but only unnoticeably. For instance, Vinasun has lowered fare by a mere VND500 a kilometer.
Ta Long Hy, chairman of the HCMC Taxi Association, said that all taxi companies should lower their fares, especially those who have not made any reduction whatsoever till now.
Similarly, passenger coach companies have also kept their fares static so far.
Luong Hoang Trung, deputy chairman of the HCMC Cargo Transport Association, said that most businesses in the association have not reduced fare rates due to increase in overhead costs.
Do Xuan Phu, director of Minh Lien Transport Company, said that according to contracts with clients, his company will hike fares by 4 percent if petrol price moves up by VND1,000 and vice versa. So, although petrol price has fallen four times, the reduction is less than VND1,000 each time.
Mr. Trung added that the association will propose to members to reduce their rates at the earliest, especially those who have not made any reduction at all this year.
After gasoline and diesel prices went up by VND2,100 and VND1,000 a liter respectively on March 7, most of the transport companies hiked their fares.
Taxi companies increased fares by VND1,000-2,000 a kilometer, coach operators hiked by 5-10 percent and cargo transporters raised freight rates by 5 percent.
