11:13 | 08/05/2015 Finance - Banking
Several taxi firms plan to raise fares after gasoline prices were hiked by around 11% on May 5.
Do Quoc Binh, chairman of the Hanoi Taxi Association, said he has got requests from many members to raise fares.
Vietnam’s state-owned fuel retailer Petrolimex has made two sharp hikes this year, increasing the price of the most popular fuel, 92-RON, to VND19,230 (US$0.96) per liter.
95 RON is selling at VND19,830 a liter, up 10.9%, the highest raise in four years.
Prices of both were hiked by 10.2% on March 11 after 13 consecutive cuts following the global downturn since last July.
"The strong gasoline price hike is valid ground for the businesses to increase their fares,” Binh said, referring to hikes on May 5.
He said the members have demanded an increase of VND500-1,000 a kilometer. But they have yet to decide on the timing.
Ta Long Hy, chairman of the taxi association of Ho Chi Minh City, did not give an estimation but said the new gasoline prices would push taxi fares up.
“Taxi firms in Ho Chi Minh City reduced their fares three times when [oil] prices went down, so now it’s necessary for them to think about raising fares.”
But in truth many taxi firms only reduced prices last November after nine cuts had been made in oil prices.
Tran Phuong Lan, deputy director of the Hanoi trade department, said the gasoline prices might affect transport tariffs but not general consumer prices.
“[Demand] is still low. So businesses will have to think hard about adjusting their prices [upward].