News ellipse 25/11/2020

Freight starts decreasing following the gas prices

Freight starts decreasing following the gas prices

Right after gasoline prices decreased on September 3, a few transport companies began to reduce freight rates. This week, it is expected that more enterprises will continue reducing freights.

According to Mr. Nguyen Anh Tuan - Director of the Price Management Department: It is required to closely review the freight charge

The Ministry of Finance has issued two letters on strengthening control of freight rates. In which, emphasizing that the price of petroleum tends to decrease clearly and will have a positive impact on the market in general, including the car transport market in particular. Therefore, the Ministry of Finance requests to closely review the freight rate compared to the gas price of the preceding declaration period to guide and request the transport enterprises to implement. Currently, the Ministry of Finance continues to monitor and remind the authorities of this.

Gas: increased VND 5,040, decreased VND 5,586 / liter

Talking to the Traffic Newspaper about why the freight rate reduction registration has not been declared, the leader of Truong Sa International Shipping Joint Stock Company in Can Tho said, at the time when the fuel price dropped below VND 17 thousand/liter, the company declared a price reduction. After that, the fuel price increased, the company still did not increase the price because each time price adjustment declaration was required, the meter had to be adjusted, procedures ...

Mr. Ta Long Hy shared that once adjusted to increase or decrease taxi fees, enterprises with a moderate number of vehicles also cost VND 600-700 million. Gasoline has been contracted by many enterprises to drivers. When the freights increase, the companies give money to support the driver not to leave the vehicles. Recently, gasoline prices have decreased, enterprises stopped providing support for about half a month.

According to Mr. Nguyen Van Hung, Chairman of the Nghe An Automobile Transport Association, at the end of 2014 and early 2015, there were 52 transport companies in the province that made commitments to reduce freight rates by 5-10%. Since then, no enterprises have adjusted their freight rates according to new gasoline prices. Compared to the previous time, gasoline prices are still higher than the lowest drop of more than VND1 thousand/liter. Therefore, it is difficult to suggest enterprises to reduce freight rates. "In the case of the upcoming domestic petroleum price drop, which is 10 - 15% lower than the previous lowest drop, we will have the ground to suggest transportation companies to reduce freight rates," said Mr. Hung.

According to calculations by the Traffic Newspaper's reporter, from the beginning of the year until now, the price of gasoline has been adjusted 11 times. In which there were 7 price reductions and four price increases with a total increase of VND 5,040/liter and a decrease of VND 5,586/liter. So, in general, the decrease from the beginning of the year until now is just over VND500/liter.

Expert’s opinion

Economist Ngo Tri Long: The State cannot set the freight charge

Currently, the transport market operates in a competitive form, so the State cannot set prices. But the authorities can fully test some of the major transport firms. If the enterprise declares incorrectly, it is required to adjust or detect enterprises with the phenomenon of "shaking hands with each other" to keep the rates, then there must be applied sanctions.

General Secretary of Vietnam Association of Valuation Nguyen Tien Thoat: Difficult to accept the inertia

The cost of fuel accounts for 35-40% of the total freight cost. With a 10% reduction in gasoline prices, if other factors remain the same, the freight must be reduced by 5%. The decrease in petrol and oil prices in recent consecutive times is an opportunity to reduce freight rates, long-distance passenger vehicles; Since then, the prices of goods and products will also decrease. That means consumers not only benefit directly from reduced travel costs, but also indirectly benefit from reduced prices. Therefore, it is very difficult to accept the reduction in rates.

Mr. Nguyen Vy Duc - Director of Thai Binh passenger car factory: Reviewing correctly and strictly handling

In order to be public, transparent and ensure the rights of the people, local authorities need to review specifically the transport enterprises to request an appropriate adjustment of freight rates. With transport enterprises, construction costs at a time when gasoline and oil prices are high but there is still no move to reduce, State management agencies need to strictly deal with them.