Nearly half of fishing boats shut down due to record high fuel prices

Figures from this agency show that on average, fishing activities consume about 330 million liters of oil each month, while the price of diesel - the main fuel forfishing vessel, has increased more than 1.7 times compared to the end of 2021, 12,440 VND more expensive than the end of 2021.

Fuel typically accounts for 45-60% of the input costs for fishing vessels. In addition, rising fuel prices have pushed up prices of other fishing products by 10-15%. As a result, fishing input costs have increased by 35-48%, while output prices have increased insignificantly.

"These difficulties have led to 40-55% of fishing vessels ceasing operations, seriously affecting the income and lives of fishermen. The domestic seafood production and export supply chains have been affected," the Ministry of Agriculture and Rural Development stated in a document recently sent to two ministries: Industry and Trade, and Labor - Invalids and Social Affairs.

The Ministry of Agriculture and Rural Development also believes that the number of fishing boats that have stopped production and are not regularly present in the sea areas also affects the protection of national sovereignty over seas and islands.

Many fishing boats of Quynh Lap commune (Hoang Mai town) anchored on the shore, fearing losses. Photo: Quang An

Accordingly, crew members working on fishing vessels that have temporarily suspended production due to increased gasoline prices will be supported according to the regional minimum wage according to Decree 90/2019, which is about 3-4.4 million VND per person, within 6 months.

By the end of last year, the country had nearly 91,720 fishing vessels operating in the sea, of which more than 42,640 were coastal fishing vessels; 30,391 were offshore fishing vessels...

Every year, fisheries exploitation ensures jobs and income for more than 600,000 fishermen directly involved in fishing at sea and nearly 4 million workers in the coastal fisheries service industry.

Since the beginning of the year,Gasoline priceDomestic prices have undergone 16 adjustments, of which diesel prices increased 13 times and decreased 3 times. Gasoline and diesel prices have both increased to record levels after the adjustment on June 21, respectively VND32,870 per liter of RON 95-III and VND30,010 per liter of diesel 0.005S-II.

Estimated proportion of taxes and costs in each liter of gasoline will be adjusted from June 21.Graphics: Ta Lu

The Ministry of Finance is seeking opinions on reducing the environmental protection tax by VND1,000 per liter of gasoline and VND500 per liter of oil, but this reduction is criticized by experts and businesses as being too small. Currently, the proportion of taxes and fees in each liter of gasoline accounts for more than 1/3 of the retail price.

In addition to reducing environmental protection tax, experts say that special consumption tax, or value added tax (VAT), and import tax are taxes that can be considered and proposed for reduction.

The Minister of Industry and Trade, when answering questions before the National Assembly Standing Committee, said that in case the operator uses all price stabilization tools but prices still increase, it is possible to consider using social security funds to support low-income and vulnerable people facing the "price storm" of gasoline.