Transport businesses in trouble due to record increase in petrol prices

On June 13, the price of E5 gasoline continued to skyrocket to over 31,000 VND/liter, and A95 gasoline to 32,370 VND/liter. The price of oil products also increased sharply by 2,490-2,630 VND/liter, pushing the selling price of diesel to 29,020 VND/liter. The escalating price of gasoline has greatly affected people's lives and the production and business activities of enterprises.

Many trucks in Do Luong are operating at a standstill due to rising fuel prices. Photo: Van Truong.

Truong An Company Limited in townDo Luongis a business specializing in trading construction materials, producing concrete, transporting cement, sand and gravel consumes a lot of fuel. Mr. Tran Duc Danh - Director of Truong An Company Limited shared: There has never been a more difficult year than this year, the price of gasoline has increased continuously, forcing businesses to struggle to cope.

Currently, the cost of gasoline accounts for 55% of the cost of transporting construction materials. The increase in gasoline prices has greatly affected business activities, such as the cost of products at this time also has to increase by 2,000 VND/km/m3 of construction materials (sand, gravel, stone, etc.).

The company has nearly 200 trucks of all kinds. Due to the increase in gasoline and oil prices, it has encountered many difficulties and had to sell over 60 trucks.

The Su Chuyen Transport Service Cooperative in Quynh Luong Commune, Quynh Luu, used to have 12 sleeper buses, but now only 6 are in operation, the rest are "shelved" due to the increase in fuel prices. Photo: Van Truong.

Also in the above situation, many passenger transport companies are also struggling because ofGasoline prices increase.

Mr. Pham Su Chuyen, Director of Su Chuyen Transport Service Cooperative in Quynh Luong Commune, Quynh Luu added: The unit has 12 sleeper buses running on the Hanoi and Da Nang routes. Due to the increase in gasoline prices, only 6 buses are allowed to run, and the remaining 6 buses are for sleeping at home. Previously, the cost of gasoline to Hanoi was only 2.5 million VND/trip, now it has doubled to 5 million VND/trip, to Da Nang it was 5 million VND/trip, now it has increased to 10 million VND/trip.

While the ticket price remains the same, tickets to Hanoi are 150,000 VND/ticket, tickets to Da Nang are 250,000 VND/ticket. Mr. Pham Su Chuyen further explained: We dare not increase the ticket price because we are afraid of losing customers. Not to mention that currently, Su Chuyen Transport Service Cooperative has 20 taxis, but due to the increase in gasoline prices, this unit only allows 10 taxis to operate, the rest are "covered".

The increase in gasoline prices has forced many mineral mines to suspend production. A quarry owner in Tru Son commune, Do Luong shared: Previously, the unit consumed 500 liters of oil every day, now the increase in fuel prices "consumes" 700 liters/day for stone mining activities including 10 motorbikes, equipment such as excavators, diggers... Meanwhile, the price of all types of stone has not increased, maintaining 120,000 VND/m3 of all types. The operation is losing money, so we have had to temporarily suspend stone mining production.

Machinery and equipment at Tru Son quarry, Do Luong stopped operating due to high gasoline prices. Photo: Van Truong

Mr. Nguyen Sy Thang - Head of Transport Management Department, Nghe An Department of Transport said: The recent increase in gasoline and oil prices has greatly affected freight and passenger transport. As of June 15, 15 transportation enterprises in the province have adjusted fares after the increase in gasoline prices. The adjustment of fares by enterprises is carried out in accordance with Circular 233/2016/TT-BTC of the Ministry of Finance. Before adjustment, there must be a report and approval from the Department of Finance.

The increase in gasoline prices has caused great difficulties for transport vehicles in Yen Thanh district. Photo: Van Truong.

The Department of Transport continues to coordinate with relevant sectors to strengthen strict management of transportation fares, ensure appropriate increases, prevent disruptions in the supply of construction materials, and ensure people's travel needs.

Van Truong