Gasoline prices increase, many bus companies cut quantity, operate at a standstill

At Vinh Market Bus Station, according to records, there are currently about 80 inter-provincial and intra-provincial passenger vans operating, not to mention about 150 trucks transporting goods every day. For passenger vans, in addition to the intra-provincial route from Vinh to the districts on National Highway 48, and inter-provincial routes, the vehicles mainly go to the provinces: Ha Tinh, Quang Binh, Quang Tri, and TT Hue.

Faced with the rising price of gasoline, many inter-provincial bus routes have been forced to adjust and reduce the number of vehicles, or combine them with cargo transportation. Therefore, atVinh market bus station, out of 80 registered vehicles operating at the time, now only about 50 are operating at a low capacity.

The high price of gasoline and oil has greatly affected transportation activities, so many owners of freight vehicles have had to increase fares. Photo: Tien Dong

Mr. Tuyen, a bus driver on the Vinh - Hue route, said: his company has 8 buses running from Vinh - Hue and vice versa. After a period of difficulty due to the Covid-19 epidemic, he thought that when applying measures to adapt to the new situation, all activities would return to normal, but the price of oil increased very high, forcing the company to reduce the number of buses. Instead of 4 trips in and out each day, now it has been cut in half, and the ticket price has been adjusted up. However, because the number of passengers has not increased and although more goods have been transported, many trips have had to make up for the loss.

Mr. Dung, owner of a professional truckfreightfrom Vinh to Yen Thanh shared: Oil prices are high, if the freight rate does not increase, we will lose money, but if we increase the freight rate, the shippers will complain. However, the freight rate increase is unavoidable, we have to tell the shippers to sympathize.

Mr. Dung cited that previously, each box of goods sent from Vinh to Yen Thanh cost only about 15,000 VND, but now it only dares to increase to 17,000 VND.

Compared to before, each package of goods has been adjusted by the bus companies at Vinh Market Bus Station to increase from 2,000 to 15,000 VND depending on the distance. Photo: Tien Dong

Obviously, the current high price of gasoline and oil has put a lot of pressure on the transportation industry, and also on many other sectors. After all, an industry considered the lifeblood of the economy and society like transportation cannot operate without fuel.

Mr. Nguyen Dam Van - Chairman of Nghe An Transport Association said: After the Covid-19 pandemic, the increase in gasoline and oil prices has had a huge impact on the transport industry. Although businesses and transport units have tried to cut many unnecessary costs to stabilize ticket prices and fares, in reality it is very difficult to do so. Because each trip, in addition to the cost of gasoline and oil, also has to pay the driver's salary and wear and tear on the vehicle. Not to mention that not every trip is full of passengers and the number of passengers is very erratic.

After the price of gasoline and oil increased, many passenger transport vehicles had to cut costs and combine passenger and cargo transport. Photo: Tien Dong

Mr. Nguyen Sy Thang - Head of Transport Management Department, Nghe An Department of Transport said: The high price of gasoline and oil has greatly affected the transport industry, especially freight and passenger transport. Currently, 6 passenger transport enterprises in the province have submitted applications for fare adjustment. The adjustment of fares by enterprises is implemented according to Circular 233/2016/TT-BTC of the Ministry of Finance. Before adjustment, there must be a submission and approval from the Department of Finance.

"Adjusting transportation fares at this time will certainly have a significant impact on the prices of consumer goods, so it is being considered by relevant agencies. After the price adjustment is approved, transportation units will be allowed to apply it. If they arbitrarily adjust prices, they will be handled according to regulations," Mr. Thang emphasized.