Taxi firms eye fare hikes amid rising fuel prices
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The opinion is divided among taxi companies about increasing fares after the recent fuel price hikes, with some wanting to do so and others fearing this will lose them, customers.
After four hikes in recent months, the latest on Oct. 26, the price of E5 RON 92 petrol currently stands at VND23,110 ($1) per liter, VND4,600 higher than in late May.
The price of RON 95 has reached a seven-year high of VND24,330, nearly VND5,000 up since May.
According to Ho Quoc Huy, chairman of Mai Linh Group, fuel accounts for 35-40 percent of costs, and so when fuel prices increase by VND5,000 per liter, taxi fares should rise by VND500-600 per kilometer.
Mai Linh and 70 other taxi firms in Hanoi have been discussing fare-related issues in the last two days, with many warnings they cannot keep fares unchanged, he said.
If companies do hike fares, they would do so by only VND200-300 to retain customers, many of whom themselves face financial difficulties amid Covid-19, he said.
Ta Long Hy, President of the HCMC Taxi Association, said: “If taxi fares increase, many people will not use taxi services because their purses are no longer full of money.”
Questions & Answers
Q.What is the current price of E5 RON 92 petrol and how much has it increased since May?
What is the current price of E5 RON 92 petrol and how much has it increased since May?
The current price for E5 RON 92 petrol is VND23,110 per litre. This represents an increase of VND4,600 since late May, following four price hikes in recent months.
Q.How much has the price of RON 95 increased since May and what is its current status?
How much has the price of RON 95 increased since May and what is its current status?
The price of RON 95 has increased by nearly VND5,000 since May. Its current price is VND24,330, marking a seven-year high for the fuel.
Q.According to Mai Linh Group, how much should taxi fares increase if fuel prices go up by VND5,000 per litre?
According to Mai Linh Group, how much should taxi fares increase if fuel prices go up by VND5,000 per litre?
According to Ho Quoc Huy, chairman of Mai Linh Group, if fuel prices increase by VND5,000 per litre, taxi fares should ideally rise by VND500-600 per kilometre to cover costs.
Q.Why are some taxi firms cautious about implementing significant fare increases?
Why are some taxi firms cautious about implementing significant fare increases?
Some taxi firms are cautious about significant fare increases because they fear losing customers. Many customers are facing financial difficulties due to Covid-19, and higher fares might deter them from using taxi services.
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