Fluctuating fuel prices put pressure on people's lives and production.

Tensions and conflicts in the Middle East – a region that supplies much of the world's oil – are destabilizing the global energy market. Concerns about supply have driven world oil prices up sharply recently.

According to the price adjustment on the afternoon of March 7th, domestic gasoline and diesel prices increased sharply across the board. Specifically, The price of RON95-III gasoline has increased to 27,040 VND per liter, following an adjustment by the Ministry of Industry and Trade and the Ministry of Finance. Thus, the price of RON 95-III gasoline (the most common type on the market) has increased by 4,700 VND, to 27,040 VND per liter. Similarly, E5 RON 92 has also increased by 3,780 VND, with a new price of 25,220 VND.

Many ride-hailing drivers, especially Grab drivers, are understandably worried. Rising fuel costs, coupled with stagnant income, have directly impacted their lives and work. Nguyen Van Dung, a Grab driver, stated: “In the past two days, with the increase in gasoline prices, my daily fuel costs have risen by approximately 50,000 VND. The escalating price of gasoline means higher fuel costs and reduced income. If gasoline prices continue to rise, maintaining my ride-hailing job will become increasingly difficult.”.

Currently, although domestic fuel supplies mainly come from production and reserves, prices have shown signs of increasing, causing concern and worry among many consumers. Many believe that as Vietnam increases fuel imports in the future, retail prices may continue to fluctuate upwards, thereby putting further pressure on transportation costs and daily living expenses for the people.

Fluctuations in fuel prices directly impact transportation costs and the price of goods. For transportation businesses, fuel accounts for approximately 30-40% of operating costs, so each increase in fuel prices leads to higher expenses. Meanwhile, adjusting freight rates cannot be done immediately due to contract and market conditions, resulting in reduced profit margins.

Ms. Hoang Thi Quy, Finance Director of Van Minh Co., Ltd., stated: “With nearly 100 vehicles primarily using diesel fuel, the sharp increase in oil prices over the past two days has put significant pressure on the company's operating costs. In light of this situation, the company is forced to recalculate its operational plan to reduce cost pressure. Simultaneously, the company may slightly increase ticket prices in the near future to offset the increased expenses.”

Rising fuel prices not only affect transportation but also put significant pressure on construction material manufacturing businesses. Fuel and transportation account for a substantial proportion of costs, from raw material extraction and machinery operation to product delivery. At Central Vietnam Construction Materials Joint Stock Company, in just the last two days, the increase in fuel prices has resulted in a daily fuel cost increase of nearly 80 million VND, putting pressure on product costs and transportation plans.

Mr. Vo Van Giang, Production Director of Central Vietnam Construction Materials Joint Stock Company, stated: “The continuous increase in fuel prices is putting significant pressure on the production costs of businesses. If this upward trend continues, the company will be forced to consider scaling down production because it will be difficult to maintain current operations. Businesses hope that the State will implement appropriate measures to regulate fuel prices, while also strengthening the management of national supply and reserves to support businesses in stabilizing production.”

Experts believe that future fuel prices will continue to depend heavily on geopolitical developments in the Middle East, as well as global energy supply. Closely monitoring the situation and proactively adapting is considered a crucial solution to minimize the impact on daily life and production.