Fares have been slashed by 69 taxi and 15 long-distance passenger transport companies in the capital since last November, after authorities urged them to do so following fuel price reductions.
The municipal Department of Transport told VnExpress online that the taxi firms have reduced fares by 500 to 1,000 VND (2.4 to 4.8 US cents) per kilometre and that transport companies have lowered their fees by 10 to 15 percent.
The agency noted that, however, most of them had made the adjustment in November, following drastic inspections by the authorities. Few had done so after domestic petrol prices fell sharply by 2,050 VND (9.8 cents) per litre on December 22.
Recently, only five taxi firms reported fare cuts, including Mai Linh with a 400 VND cut, Tien Thanh with a 500 VND cut and Xuan Thanh with a 500 to 1,000 VND cut. Vinh Ha and Hoang Gia also reduced their rates by 1,000 VND per kilometre.
Some of the transport companies that have cut fares recently include the Thang Long Transport Cooperative, which cut fares by 30,000 VND (1.43 USD) per ticket, and Hong Ha Transport Services JSC, whose ticket prices are down 10,000 VND (48 cents) per unit.
The leader of a transport enterprise, who chose to remain anonymous, told VnExpress that transporters are bearing rising costs related to road use, insurance, wages and equipment, so they will need more time to consider any further fare cuts.
Hanoi Transport Association Chairman Bui Danh Lien told Dien dan Doanh nghiep (The Business Forum) that any fare changes are proving to be costly for transporters as they have to reclaim old tickets and print new ones.
While the association recently called upon enterprises to register a fare reduction by January 15, some firms are also worried about more fluctuations in petrol prices every time they adjust their fees.
The Vietnam Automobile Transportation Association's Chairman Nguyen Van Thanh noted that the fare reductions of 500 to 1,000 VND per kilometre by the aforementioned taxi firms are reasonable, since fuel costs account for 30 to 50 percent of their total expenses.
He also suggested that functional agencies should inspect other companies to ensure reasonable rate cuts across the market.
In the south, Ho Chi Minh City Taxi Association Chairman Ta Long Hy said almost all member firms have cut fares by 500 VND per kilometre after a gasoline price drop on January 6. Local taxi firms had already cut their fees by 500 to 2,000 VND about two months ago.
A leader of the Mien Dong (Eastern Area) Coach Station in the city said the station was notified about the fare cuts by about 100 transporters after the last two fuel price reductions. The transport fees have been pushed down by 5 to 10 percent as a result, he added.
On January 6, retail petrol prices were cut by 310 VND (1 cent) per litre. Prices for a litre of RON 92 and E5 gasoline were slashed to 17,570 VND (0.81 USD), while the price of diesel was reduced to 16,630 VND (0.77 USD) per litre.-VNA
The municipal Department of Transport told VnExpress online that the taxi firms have reduced fares by 500 to 1,000 VND (2.4 to 4.8 US cents) per kilometre and that transport companies have lowered their fees by 10 to 15 percent.
The agency noted that, however, most of them had made the adjustment in November, following drastic inspections by the authorities. Few had done so after domestic petrol prices fell sharply by 2,050 VND (9.8 cents) per litre on December 22.
Recently, only five taxi firms reported fare cuts, including Mai Linh with a 400 VND cut, Tien Thanh with a 500 VND cut and Xuan Thanh with a 500 to 1,000 VND cut. Vinh Ha and Hoang Gia also reduced their rates by 1,000 VND per kilometre.
Some of the transport companies that have cut fares recently include the Thang Long Transport Cooperative, which cut fares by 30,000 VND (1.43 USD) per ticket, and Hong Ha Transport Services JSC, whose ticket prices are down 10,000 VND (48 cents) per unit.
The leader of a transport enterprise, who chose to remain anonymous, told VnExpress that transporters are bearing rising costs related to road use, insurance, wages and equipment, so they will need more time to consider any further fare cuts.
Hanoi Transport Association Chairman Bui Danh Lien told Dien dan Doanh nghiep (The Business Forum) that any fare changes are proving to be costly for transporters as they have to reclaim old tickets and print new ones.
While the association recently called upon enterprises to register a fare reduction by January 15, some firms are also worried about more fluctuations in petrol prices every time they adjust their fees.
The Vietnam Automobile Transportation Association's Chairman Nguyen Van Thanh noted that the fare reductions of 500 to 1,000 VND per kilometre by the aforementioned taxi firms are reasonable, since fuel costs account for 30 to 50 percent of their total expenses.
He also suggested that functional agencies should inspect other companies to ensure reasonable rate cuts across the market.
In the south, Ho Chi Minh City Taxi Association Chairman Ta Long Hy said almost all member firms have cut fares by 500 VND per kilometre after a gasoline price drop on January 6. Local taxi firms had already cut their fees by 500 to 2,000 VND about two months ago.
A leader of the Mien Dong (Eastern Area) Coach Station in the city said the station was notified about the fare cuts by about 100 transporters after the last two fuel price reductions. The transport fees have been pushed down by 5 to 10 percent as a result, he added.
On January 6, retail petrol prices were cut by 310 VND (1 cent) per litre. Prices for a litre of RON 92 and E5 gasoline were slashed to 17,570 VND (0.81 USD), while the price of diesel was reduced to 16,630 VND (0.77 USD) per litre.-VNA
