Transport units 'struggling' in the storm of fuel price increases

On May 23, the Ministry of Industry and Trade - Ministry of Finance announced new gasoline prices, accordingly, increasing by 680 VND per liter of E5 RON 92 gasoline, increasing by 670 VND for RON 95 gasoline. This is the fourth consecutive price increase since April 21, and after this increase, the price of RON 95-III gasoline has reached a new peak, up to 30,650 VND per liter. The price of E5 RON 92 gasoline is 29,630 VND per liter.

The increase in gasoline prices has directly affected people's lives as well as the production and business situation of enterprises. For transport units, the increase in gasoline prices has caused input costs to increase, forcing them to find ways to adapt.

Transport Company LimitedNghe Anis a unit specializing in transporting goods, focusing on the Ha Tinh - Nghe An route. The unit has 6 trucks and many workers in charge of loading, unloading and transporting goods. Since the time gasoline prices peaked, the unit's business activities have had to adjust to adapt to the new situation.

The company representative said: "At the time when gasoline prices were still above 20,000 VND/liter, the monthly cost of gasoline was 30-35 million VND. Since gasoline prices exceeded 30,000 VND/liter, fuel costs have reached 50 million VND, not to mention costs incurred during transportation. This is a large number that forces us to tighten other costs to minimize losses."

Although gasoline prices have peaked, this unit is still in the process of exploring, not rushing to increase fares, accepting a decrease in revenue to compete, thinking long-term.

Despite the increase in fuel prices, some freight transport units do not dare to increase fares for fear of "losing customers". Photo: Quang An

The increase in gasoline prices has also caused headaches for passenger transport units. A representative of Mai Linh Nghe An Company Limited said: "Although the epidemic has been controlled, the number of operating vehicles is still not 100% due to the high fuel prices, many drivers cannot maintain their income and have changed jobs. Currently, there are still about 50 taxis lying around, unable to operate."

It is known that in early March, Mai Linh Taxihas submitted documents to the departments, transport associations to increase service fares. Accordingly, for 7-seat taxis, it will increase by 1,000 VND/km, for 5-seat taxis, it will increase by 800 VND/km. However, that was the time when gasoline prices, although at their peak, were still below 30,000 VND/liter.

Many taxis are grounded because they cannot operate during times of high fuel prices. Photo: Quang An

Mr. Ho Quang Hieu, Deputy Director of Mai Linh Nghe An Company Limited, shared: In fact, increasing fares will help the company stabilize revenue again, but this must be carefully considered because the increase must be appropriate to people's income. If the increase is too high, people will not choose their service. Not to mention that increasing fares requires paperwork and procedures that take a lot of time. If the increase is approved, it will also have to be edited and the listed price will be re-posted on all vehicles, which will cost more. Therefore, the company is currently maintaining fares, accepting a decrease in revenue.

"However, if gasoline prices continue to increase in the next adjustments, we will be forced to increase fares to maintain operations because there is no other way," Mr. Hieu emphasized.

The fare increase has been applied by some long-distance bus companies, with an increase of 10,000 - 20,000 VND/ticket. Photo: Quang An

Besides many units still keeping the fares the same, there are still some long-distance passenger buses in Nghe An that have increased ticket prices to adapt to the new situation. A representative of VM bus company in Nghe An said: Currently, the unit has informed passengers about the ticket price increase to 10,000 VND/ticket since the time when gasoline prices increased. This is a price that many passengers can accept. For freight transport services, the old price remains the same.

According to the survey, the fare increase has also been applied by some bus companies in Nghe An, especially on long routes such as Nghe An - Ho Chi Minh City, Nghe An - Binh Duong...

With the record increase in gasoline prices, businesses in general and transportation businesses in particular in the province have to both hold on and wait for changes to come up with timely adaptation solutions. In addition, the units also hope that all levels and sectors will continue to synchronously implement policies to support loans and reduce taxes, helping businesses gradually overcome difficulties and recover after a long period of being affected by the Covid-19 pandemic.