Gasoline Prices Fall, Cost Pressure Eases | Company

Illustrative photo (Source: VNA)

Hanoi (VNS/VNA) – Falling gasoline prices have reassured individuals and businesses and may stimulate consumer demand in the near future.

Nguyen Minh Chau, director of Hanoi CNC Accurate Mechanical Company Limited, said that gasoline prices represented the majority of transport and logistics costs companies.

As prices continue to fall, individuals and businesses are very excited as gasoline prices have successively surged in recent months, putting pressure on businesses, Chau said.

Although it is not a unit operating in the transportation industry, the decline in gasoline prices also partly had a good influence on the transportation, production and business activities of the company, said the manager.

Nguyen Cong Thang, a driver on the Hanoi – Hai Phong route, said that when gasoline was over 30,000 VND per liter (US$1.3), the one-way cost was around 500,000 VND, but with both past deep discounts, the cost has dropped to 400,000 VND.

“As citizens, we are very happy when the price of gas keeps dropping. The cost is less. I also hope that in the future, if possible, government policies will continue to lower the price of gasoline; at the same time, controlling the prices of everyday items,” he added.

Bui Danh Lien, vice president of the Hanoi Transport Association, said lower gasoline prices have helped companies in the transport sector reduce production and operating costs.

However, global oil price movements are still unpredictable, although there is still room for domestic price reductions.

The government, ministries and departments will continue to propose reductions in import taxes and excise duties to further lower gasoline prices, help reduce costs and improve business competitiveness.

Proposal for tax reduction

The Vietnam Roads Department (DRVN) has sent a written request to propose reduction of value added tax for transport services and reduction of corporate tax to support transport companies.

The management said that through its survey of the operation of transport companies across the country, it found that transport companies faced many difficulties and operated in moderation.

While fuel prices are soaring, fuel costs in the cost structure account for 35-45%, and many transportation companies in provinces and cities across the country have not yet raised their freight rates.

For freight transport, the survey showed that with the current price of gasoline, freight rates would need to increase by 10-20% depending on the route and type of freight to compensate for the increase in fuel prices. fuel./.

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