VietNamNet Bridge – Many taxi firms in Ha Noi are expected to raise taxi fares by VND600 -1,000 per kilometre in the next fortnight, responding to the recent petrol price hike, according to the chairman of the Ha Noi Taxi Association Do Quoc Binh.

Many taxi firms in Ha Noi are expected to raise taxi fares by VND600 -1,000 per km in the next fortnight responding to the recent petrol price hike.—Photo Ha Noi Taxi Association

Petrol prices have been raised to VND 24,580 (US$1.17) per litre since last Thursday.

The latest 16 percent increase in petrol prices put taxi firms under pressure to pass on the costs to customers, Binh said, adding that since the beginning of this year, taxi fares have only been raised 5- 6 percent.

"Transport firms including taxi companies have struggled to deal with raised petrol prices and fare increases in the past, where they risked decreased passenger numbers and reduced revenue," he said.

A representative from Taxi 52, a taxi firm in the capital, said that due to the peaked petrol price, the firm could not cover costs for operation if they did not raise the current fares.

Additionally, taxi drivers currently under a contract mechanism, under which they have to pay a fixed amount to their companies. As the petrol price are raised, they have to spend VND30,000 - 50,000 ($1.4 -2.4) additionally each day, causing their income to fall 30 percent to VND900,000 -1.5 million ($43-71.7).

Binh stated that besides adjusting taxi fares to ensure assist operation and drivers, taxi firms should also reduce other costs as much as possible and have a support policy for drivers.

Source: VNS