Transport firms on road to higher fares

Scores of Ho Chi Minh City-based transport firms are weighing up hiking fares on the back of escalating fuel costs.

The recent fuel price surge on March 29 made a number of transport firms mull plans to hike fares.

Accordingly, a litre of petrol jumped 10 per cent to VND21,300 ($1.02) from VND19,300, while a litre of diesel rose from VND18,300 to VND21,000. The increase followed an 18 per cent hike on February 24.

Ho Chi Minh City Union of Transport Cooperatives director Phung Dang Hai suggested a 10 per cent hike to current fare levels. “Otherwise, transport firms can not offset operating costs,” Hai said.

The 10 per cent hike was also the ceiling level members of the Ho Chi Minh City Taxis Association will shortly apply, said its chairman Ta Long Hy.

Sixteen out of 32 taxis firms are reportedly operating in the southern growth engine and they will soon add VND600 to VND1,000 per square kilometre to current fares.

Ho Chi Minh City Goods Transport Association recently gave the green light allowing city-based transport firms to hike current fare by 8 to 10 per cent to make up for rising input costs.

“In the face of current economic vulnerabilities our management urged member businesses to save costs, thus avoiding hiking fares abruptly and share difficult time with the whole society,” said the association’s deputy chairman Luong Hoang Trung.

Lately, privately-run Mai Linh Group revealed that fare levels of its long-haul coaches such as Mai Linh Express running inter-provincial routes will hike between 6 to 10 per cent, depending on vehicle types, quality and travel distance. Mai Linh Express’ new ticket price scheme will be made public not later than April 20, 2011.

A representative of privately-run Phuong Trang Transport Company said the company would not raise the transport cost in the short term despite spiraling input costs and the national big holidays April 30 and May 1 getting nearer.

A Ho Chi Minh City Department of Industry and Trade spokesperson said shortly after petroleum prices were hiked, city authorities asked petroleum distributors to ensure stable fuel supply to their agents in order to stabilise market prices. – VIR

Tags: Vietnam transportation