Gasoline prices have dropped sharply, why haven't Nghe An transport companies reduced their fees?

Fares remain high despite sharp drop in petrol prices

A survey of bus and sleeper bus routes of a number of freight transport enterprises in Nghe An province on May 9 showed that fares and ticket prices have not been adjusted to correspond to gasoline prices before the Covid-19 pandemic.

Gasoline prices have dropped sharply, but bus fares on intra-provincial routes have not been adjusted down. Photo: NH

Specifically, for bus routes from Vinh to the districts, passengers still have to pay the listed fares from more than 2 months ago. For example, the Vinh - Giat route is still 40,000 VND/trip and if you buy a monthly ticket, it is still 600,000 VND/month. Talking to us, representatives of bus companies also confirmed this.

In the same situation, the price of long-distance sleeper bus tickets from Vinh to other routes has not decreased. Specifically, the Vinh - Hanoi route is from 250,000 VND/trip; the districts to Hanoi are from 130,000 - 170,000 VND/trip; the high-end Vinh - Hanoi bus ticket price is from 260,000 - 360,000 VND/passenger/trip (depending on location). In addition, from April 23 to April 29, after the Government loosened the regulations and allowed some public transport routes to operate, if passengers travel by car or plane from Vinh to Ho Chi Minh City, if they do not book tickets in advance and buy tickets closer to the departure time, the fare will even be double or triple compared to normal days.

From April 23 to April 29, passengers on domestic flights who buy tickets urgently, close to the departure time, will have ticket prices many times higher than those booked in advance. In the photo: Passengers practice social distancing when checking in at Vinh airport. Photo: NH

In addition to passenger transport, freight transport has not yet adjusted to reduce prices. Mr. Toan, a transport company in Vinh City, said: As a unit specializing in contracting for site clearance for industrial parks, the sharp drop in gasoline prices also wants to increase trips and volume, but because the implementation is based on a previously signed contract, the fare is not reduced and it is also impossible to increase trips. According to Mr. Toan, if we accept small-scale site clearance work from outside, we can reduce the fee for the lessee, but this period is difficult and difficult to collect debts.

Sharing the same view, Mr. Bao, a construction materials business on Phan Boi Chau Street, Quan Bau Ward (Vinh City) said: The decrease in gasoline prices is an opportunity to reduce transportation costs for goods and materials for customers. However, because most of the goods are imported and transported at a time when gasoline prices are high, the cost of renting premises is often paid in advance and included in the cost. When the Covid-19 epidemic occurred, the amount of imported goods could not be sold, so it was not possible to reduce the cost according to gasoline prices.

Some sleeper trucks from Vinh to other provinces also had to reduce trips and stay at the station due to the epidemic, with few passengers. Photo: Nguyen Hai

Sharing the hardship but fares will have to fall

Faced with the above reality, speaking with us, Mr. Nguyen Viet Hung - Head of the Transportation Department, Department of Transport said: Gasoline prices have decreased from 20,000 - 21,000 VND/liter, oil prices from 16,000 - 18,000 VND/liter, to 11,000 - 12,000 VND/liter for gasoline and 10,000 VND/liter for oil, which means that the main input costs of transport enterprises have decreased significantly. Since the social distancing order was partially and completely lifted, the Department of Transport has issued 2 directives, including a request for transport enterprises to review new fares in line with the decline in gasoline prices.

Gasoline prices have dropped sharply, but because they have only reached 30-60% of capacity, fares cannot be reduced. Photo: NH

However, in reality, due to the heavy impact on production and business activities, especially the service sector, the service sector in general and transportation in particular are in a difficult period, some businesses are even suffering heavy losses, so they cannot adjust prices immediately. Although they are allowed to operate at 50% capacity from April 29 and 100% capacity from May 3, due to the small number of passengers, transportation businesses have not yet operated at full capacity in terms of vehicles and seats.

Passengers take the bus on Mai Hac De Street (Vinh City). Photo: Quang An

In recent years, public bus transport has faced fierce competition from other public transport, so the number of passengers has decreased sharply. Since the outbreak and after the Covid-19 pandemic, although the quarantine order has been lifted, the number of passengers is still very low. To cover costs and survive, instead of increasing fares, some units have proactively reduced the frequency of trips and are not considering adjusting fares for the time being.

Representative of Nghe An Bus Transport Association

Freight transport and land leveling businesses have yet to reduce freight rates compared to the reduction in gasoline prices. In the photo: Trucks transporting land for leveling in Nghia Dan district. Photo: Nguyen Hai

Although we know that due to the epidemic, transport service businesses are currently facing many difficulties, but to ensure the rights of passengers and contribute to reducing the price index, businesses should calculate to reduce fares. If not, the Department of Transport will continue to request the Bus Association and transport businesses to calculate to reduce fares accordingly. Initial information also shows that some businesses have calculated new fare tables to register with the Department of Transport.

Mr. Nguyen Viet Hung - Head of Transport Department, Department of Transport

In our opinion, transportation businesses are facing difficulties, but also difficulties for society as a whole, due to the Covid-19 pandemic. Therefore, to ensure fairness when gasoline prices have dropped sharply, transportation businesses and associations need to calculate to come up with new fares that are consistent with current gasoline prices and contribute to the common good./.