Several transport companies in Ho Chi Minh City have decided to increase their fares, as a result of hike in fuel prices.
Dang Duc Tiep, Director of Dang Tien Transport Company said that the company will increase fares on all new contracts by at least 4-5 per cent.
Luong Hoang Trung, Deputy Chairman of the Cargo Transport Association in Ho Chi Minh City, said that with the recent fuel prices increasing by 10 per cent, transport fares will also have to add on an increase on costs by a minimum 2.5-3 per cent.
According to Thuong Thanh Hai, Deputy Director of the Mien Dong Coach Station, freight companies have been hardest hit by the fuel price hike. The industry has been left with no choice but to implement a fuel surcharge to meet costs. However, they also face pressure from clients who bargain over prices, added Hai.
Transport units operating at the station now have to adjust their fares following the recent fuel price hike, said Hai.
On the other hand, if transport companies wait to seek formal approval to increase fares from relevant departments, the entire process will take at least 10 days, and companies will lose a lot of revenue during that time.
Till now, the station has not received any information regards an increase in transport fares from transport companies operating in its premises.
