Consumer prices do not fall despite fuel price cuts

By Dat Nguyen   October 6, 2022 | 01:49 am PT
Consumer prices do not fall despite fuel price cuts
Vegetables are sold at a market in Go Vap District on October 5, 2022. Photo by VnExpress/Thi Ha
Consumer prices have been rising for the last four weeks despite a sharp fall in fuel costs as transport operators refuse to cut prices.

Traditional markets in Ho Chi Minh City are selling mackerel at VND350,000 (US$14.65) per kilogram, up 17% from four weeks ago, and squid at VND240,000, up 9%.

Because of the sharp rise in prices, Dang, a trader in Binh Thanh District, only sells cobia to customers who pre-order since the price of the fish has doubled since last year.

Pork prices are up 5-7%, and vegetables, 10%.

The Department of Agriculture and Rural Development in An Giang, Can Tho and Tra Vinh said vegetable prices have risen by VND5,000 per kilogram in the last four weeks, while egg prices are up by VND400.

The department forecast prices to continue rising this year due to unfavorable weather conditions and rising demand.

Hoa, a vendor at HCMC's Thu Duc market, said vegetable supply has fallen by 20% after the recent storm damaged crops.

Dang reported similar supply problems after fish died en masse in Phan Thiet farms since the end of August.

Vendors also complained that transportation costs have remained unchanged in the last few months though gasoline and diesel prices have fallen by nearly 35% since June.

Lam Dai Vinh, CEO of Lam Vinh Transportation, claimed his company still needs to pay salaries and management expenses and maintain vehicles, and those costs have not gone down.

A CEO of a transport company in HCMC, who asked not be identified, said his company only hiked prices marginally when gasoline prices surged in the second quarter and so sharp cuts now would cause losses.

Truong Chi Thien, CEO of egg producer Vinh Thanh Dat, said the government needs to provide tax incentives to food producers to keep prices down.

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