Freight rates: If not reduced, license will be revoked

On December 22, the Ministry of Transport issued a document requesting local transport departments to strengthen control of transport fares, ensuring that transport fares are adjusted in line with the reduction in fuel prices.

Transporting goods at Hoc Mon agricultural wholesale market, Ho Chi Minh City at noon on December 22. Business people are complaining because transport companies have not reduced fares.

Specifically, the Department of Transport must require transport enterprises to re-declare fares, especially the costs that make up the fares. In particular, the Department of Transport must coordinate with the Department of Finance to inspect and supervise the implementation of declaration and posting of transport fares. If violations are detected, they must be strictly handled, and may even have their licenses revoked.

Gasoline prices drop sharply, freight rates remain unchanged

Previously, the Ministry of Finance sent a document to the Ministry of Transport requesting transport enterprises to reduce transport fares, as fares remain unchanged despite the continuous decrease in petrol prices and are currently at a low level. Speaking to Tuoi Tre, Mr. Nguyen Anh Tuan, Director of the Price Management Department - Ministry of Finance, said that since mid-September until now, petrol prices have decreased sharply, in which diesel prices have been adjusted down deeply by 1,250 VND/liter on December 18, while transport fares have not decreased.

According to the Ministry of Finance's calculations, compared to July 1, 2015, the current gasoline price (December 18) has decreased by 20.8%, helping the cost of gasoline-powered vehicles decrease by 5.2-7.3% depending on the vehicle's fuel consumption. Similarly, the price of 0.05S diesel oil at the same time has decreased by 25.5%, helping diesel-powered vehicles reduce their cost by 8.9-11.5%.

Meanwhile, compared to three months ago (September 18), gasoline prices have decreased by 8.6%, helping to reduce transportation costs for gasoline-powered vehicles by 2.2-3%, while the price of 0.05S diesel has decreased by 13.7% with a corresponding reduction in transportation costs of 4.8-6.2%.

Mr. Tuan said that this is the basis for the Ministry of Finance to propose the Ministry of Transport to direct local transport departments to preside over and coordinate with the finance department and relevant agencies to strengthen the management of transportation fares, in order to ensure consumer rights and contribute to stabilizing prices in the market in general.

Many taxi passengers complain that gasoline prices have decreased but the fare has not decreased - Photo by Huu Khoa

Take strong action against businesses that are slow to reduce fares

"If businesses are slow to reduce fares, the transport authority will not only impose administrative fines but also revoke the business license of the business," Mr. Tuan affirmed.

According to Mr. Tuan, to know exactly how much the transportation fare reduction is appropriate, it is necessary to make a comprehensive assessment, including the costs that make up the transportation fare such as wages, electricity, clean water, etc. However, according to Mr. Tuan, fuel accounts for 30-40% of the cost of transportation fares, so a sharp decrease in fuel prices while transportation fares remain the same is unacceptable.

Meanwhile, Mr. Phan The Rue - former Deputy Minister of Industry and Trade - said that when oil prices go down, the economy and consumers must benefit. However, for the past two years, many transport businesses have been slow to respond or have reduced their transport fares disproportionately. In particular, most taxi businesses have refused to reduce their fares.

“The price of gasoline has dropped sharply for the past two months but taxi prices have not moved, which is very unreasonable,” Mr. Rue emphasized. According to Mr. Rue, many opinions say that when crude oil prices decrease, Vietnam benefits 60% and does not benefit 40%. However, if the State does not manage well and the management agency does not closely monitor, the economy and consumers will not benefit fully by 60% while still having to bear the full 40% of the damage.

According to Mr. Rue, this is the State’s story. Management agencies need to be more determined and closely monitor price management, especially when transportation costs account for a large part of the cost of goods. “If any business is slow to reduce transportation costs in line with the reduction in fuel prices, the State needs to suspend operations and stop granting licenses to open routes…” - Mr. Rue suggested.

According to News