Taxi fares set to rise 5 percent in Vietnam after gasoline hike

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The recent 10 percent hike in gasoline prices will force taxi companies to raise their rates by around 5 percent in the next few weeks, an industry group said.

Nguyen Manh Hung, chairman of the Vietnam Automobile Transport Association, told Thanh Nien that the association had warned its member companies of a possible increase in fuel prices over the past month.

The hike this week means transport companies will pass on the higher costs to their customers, but it will take them at least two weeks to receive approval from local authorities, he said.

The Ministry of Finance on Wednesday allowed traders to raise retail prices of 92-RON gasoline, the most commonly used fuel grade in Vietnam, to a record high of VND22,900 per liter.

Hung said another 5 percent increase in the price of diesel fuel, also announced Wednesday, could translate to a further 2 percent rise in transport costs.

According to the ministry, retail fuel prices in Vietnam will continue to rise as long as global prices continue to surge. If world prices fall, the ministry said it will bring back import taxes and reduce withdrawals from the price stabilization fund before considering a price cut.

The Ministry of Finance late last month decided to remove the 4 percent import duty on gasoline.

On Thursday it cut import tariffs on diesel and kerosene from 3 percent to zero.

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