Taxi firms eye fare hikes amid rising fuel prices

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 warning 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."