Taxi companies in Ho Chi Minh City have announced that they will lower their fares by VND500-600 (2-3 US cents) a kilometer this Friday after local gasoline prices dipped to a seven-year low last week.
Mai Linh, one of the two biggest taxi companies in the city, said Monday its fares will be reduced to VND13,000-VND16,100 ($0.58-$0.72) a kilometer, depending on the car size.
The firm said it will adjust the fares in the northern and central regions later.
Other taxi companies including Vinasun and Hoang Long also said they will slash rates by VND500 from February 26.
Last week the Ministry of Finance has ordered transport companies to adjust their fares amid criticism that taxi and bus companies have refused to play fair, keeping rates almost unchanged on the heels of several reductions in pump prices.
Following the latest cut on February 18, the popular gasoline grade 92-RON is now sold at VND13,752, or around 60 US cents, per liter, down 16 percent from early this year. Diesel prices have gone down 20 percent.