The fuel price hikes lead to an increase in the prices of products.
The prices of goods and services sold at traditional markets and food and beverage stores in the city have not yet dropped. Accordingly, prices of vegetables surged by 30-40 percent compared with normal days.
Supermarkets, such as Co.opmart, MM Mega Market are offering promotional programs with big discounts for many products. These items were planned to be delivered to supermarkets at stable prices by enterprises from a few months to one year before.
The sharp fall in petrol price is expected to control the Consumer Price Index (CPI); prices of essential commodities, manufacturing and trade activities, especially transportation services; and exploitation activities of fishery, agriculture and tourism, that are soaring, said a leader of the Ministry of Industry and Trade.
Many transport firms have increased fares due to the high fuel prices, which accounted for 30-40 percent of the overall cost. The reduction in petroleum prices only helps businesses to slow down their price Increase plans but the prices of goods and services will remain high, said economic expert Vu Vinh Phu.
Many transport firms have increased fares due to the high fuel prices.
Chairperson of the Hanoi Taxi Association Nguyen Cong Hung said that the sharp increase in gasoline prices is putting pressure on transport operators, forcing firms to increase service prices to continue their business after suffering greatly during the Covid-19 pandemic. The association is planning to raise the transport cost of VND1,000-VND1,500 per kilometer, he added.
According to chairman of the Vietnam Automobile Transport Association Nguyen Van Quyen, if the reduction for VAT, special consumption tax and other fees and charges takes effect from October, the economy will be severely impacted.
Jet fuel prices keep rising. The Civil Aviation Authority of Vietnam (CAAV) has proposed the Ministry of Transport launches cost reduction solutions to ease the burden for aviation businesses, CAAV Director Dinh Viet Thang said.
