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| Photo: VNN |
The latest petrol price hike in Vietnam has triggered off a hike in the prices of other consumer and essential goods in southern hub Ho Chi Minh City.
Following last month’s 9-10 percent rise in fuel rates, prices of major food items, vegetables, and fruits had risen by 10 to 20 percent, the city’s market watch committee said.
Seafood and pork prices went up by 5-10 percent.
Some fishing companies forecast an increase of 10-15 percent in wholesale prices this month.
Analysts expected the consumer price index, which measures inflation, to rise by about 0.6 percent this month.
Vo Van Duc Bay, deputy director of the Cho Lon Plastics Company, said his company would raise prices soon.
It had tried to hold them down this year despite a 30 percent rise in imported raw material costs but after the fuel prices skyrocketed it was no longer possible, he said.
Other manufacturers feared that if they did not raise prices the rising costs would cut into their profits but that if they did so they would lose market share.
Analysts also expected prices of coal, power, paper, and cement to rise by 0.06 to 0.9 percent, farm produce by 0.05 to 0.8 percent, transportation by 1.7 to 4 percent, and seafood by 4.9 percent.
Hard hit
HCMC transport operators have sought local government approval to increase fares by 15 – 20 percent.
They said the ‘challenge’ was huge since fuel made up 30 - 40 percent of their total operating expenses.
A bus company representative said his company incurred an additional VND4.5 million ($281) daily on fuel to keep more than 300 coaches running.
He claimed HCMC-based transport firms had spared no effort to avoid raising fares but were now threatened by bankruptcy.
Goods transporters might be allowed to raise tariffs by year end.
Source: Thanhniennews