Increasing petrol prices caused by the Russia-Ukraine conflict have forced residents in major cities such as Hanoi and Ho Chi Minh City to change their behaviour in order to adapt to the new situation.
|Rising petrol prices have increased a heavy financial burden on consumers.|
Residents count cost of latest rises
Domestic petrol prices hit all-time high on March 1 when the Government raised retail petrol prices by more than VND500/l to VND26,077/l for E5 RON92 bio-fuel and VND26,834/l for RON95-III.
Petrol prices are likely to edge up to close to VND30,000/l when the government fixes new pricing levels for petrol and oil on March 11 following price volatility in the global market.
Students, housewives, and office workers have said they have now felt the pinch as petrol prices go wild, forcing them to tighten their belt.
Minh Thuy, an office worker in Ho Chi Minh City, said she spent 20 minutes placing an online order for lunch as she sought food outlets offering discounts to save money.
It’s a bit expensive if a bowl of Bun (noodle soup) costs VND34,000 plus VND37,000 shipping charge, said Thuy, adding that she had left the platform and spent more time trying to find other eateries that offer more discounts.
Thanh Hien a resident of Hanoi, also complained that with VND50,000 spent on petrol, she can now only travel by motorbike for three days instead of five days as seen previously. She said she was considering travelling by bus to save her budget.
Similarly, The Cuong, a student in Ho Chi Minh City, decided to cook daily meals with a group of friends at home to save money due to rising prices of commodities in the market.
Tax cut proposed to stabilise petrol prices
Instead of calling taxis or motorbikes through apps, many people have now chosen to drive motorbikes by themselves, or make use of electronic vehicles or bus for travelling.
Many residents have complained that while their income has not increased, with their wages even axed due to the impact of the COVID-19 pandemic, petrol price hikes have fueled prices of all consumer goods and services.
Nguyen Van Huy, a Xe Om driver residing in Hanoi, shared that the subsequent increases in petrol prices have placed a heavy financial burden on transporters like him, particularly as every month he has to refill his vehicle many times, an expense which typically costs him a lot.
He expressed his hope that the Government swiftly take feasible solutions aimed at stabilising petrol and oil prices moving forward.
Relevant State management agencies proposed that the government reduce some taxes and fees as part of efforts to stabilise domestic petrol prices.
According to the Ministry of Industry and Trade, the stabilisation of domestic petrol prices through cutting import tax, excise tax, and environmental protection tax will contribute to supporting production, businesses, and economic recovery, in addition to controlling inflation.
The Ministry of Finance has put forward a reduction of VND1,000 per litre for petrol, despite the global price volatility. Domestic petrol prices are predicted to rise by more than VND3,000 per litre on March 10, so a reduction of VND1,000 per litre will have little impact.
The Ministry of Industry and Trade (MOIT) and Ministry of Finance (MOF) have raised the ceiling fuel prices for the March 1 review. This is the third consecutive price increase in the Year of the Tiger.
Despite rising commodity prices following the Russia-Ukraine crisis, experts believe that within six months or a year from now, global inflation will cool down.