Many people, especially those with low incomes, are being strongly affected by the recent hike in gasoline and oil prices. Therefore, it is urgent to consider solutions to restrain the upward trend in gasoline and oil prices in order to limit the impacts of negative market fluctuations on people's lives.

Commodity price hike has caused purchasing power in the market to slow down. People are seen buying goods at the Co.opmart supermarket in Da Nang. Photo: QUYNH TRANG

Many items skyrocketing in price

Seven days after the price of gasoline climbed to the record level, the prices of essential commodities have also moved up as a way to compensate for the cost of input materials as well as transportation charges due to the adverse impact of gasoline price hikes seen over recent months.

Surveyed at the Hoa Cuong wholesale market, the largest of its kind in Central Viet Nam, most fruit and vegetables sourced from Da Lat City in the Central Highlands province of Lam Dong soared by 3,000 - VND5,000/kg depending on types. Meanwhile, local wet markets have seen the prices of fruit and vegetables increase sharply as compared to one month ago.

Specifically, leafy vegetables went from VND12,000 to VND15,000/kg; zucchini up from VND17,000/kg to VND20,000/kg; carrots up from VND15,000 to VND18,000/kg; whole industrial chicken meat up VND65,000/kg to VND75,000/kg.

Meanwhile, some grocery stores now witness a wave of price hikes in many items on shelves.

For instance, Thai hot pot noodles increased from VND180,000 to VND190,000/cardboard box, fish sauce in the popular segment up from VND24,000 to VND31,000/500ml bottle, white sugar from VND17,000 to VND25,000/kg, beer from VND320,000 VNDto 365,000 VND/barrel of 24 cans.

In addition, most confectionery dealers are constantly hiking prices with each going up VND1,000-VND2,000/product.

The strongest increase was reported in cooking oil products. For instance, the price of Meizan Gold cooking oil climbed from VND62,000/ 2 liter bottle VND102,000. Simply cooking oil was previously priced at 48,000 -52,000 VND/bottle of 1 liter, now it is set at VND64,000 - VND68,000/bottle.

According to some small traders at the Hoa Cuong wholesale market, the price of cooking oil is currently skyrocketing and shows no sign of subsiding. Some companies even report that cooking oil products are out of stock.

Mr. Tuan, the owner of Tuan Vy grocery store based in Hoa Khanh Bac Ward, Lien Chieu District said that the prices of most beverage products of Tan Hiep Phat Beverage Group went by 4% whist those of powdered milk rose by 5 - 9% / depending on brands. At supermarkets, the prices of essential consumer goods also recorded an increase of 5 - 10% over the past 2 weeks.

Specifically, Omachi instant noodles are now sold at VND205,000/cardboard box, instead of only VND190,000 as previously, whilst types of dishwashing liquid products have had their prices hiked 10-15% from the beginning of the year.

A representative of the Winmart+ system said that the prices of products such as chemicals, soft drinks, milk and imported food have adjusted upward as a result of the increase in freight rates as well as the cost of input materials as explained by the supplier.

The price of essential items has increased, causing people to have to tighten their belts. Shoppers are seen at the Tuy Loan wet market. Photo: QUYNH TRANG

More pressure put on consumers

The increase in gasoline and oil prices has led to an increase in the prices of all living expenses and essential goods, making people's lives more difficult which is sending them tighten their belts as inflation erodes their purchasing power and incomes remain stagnant.

Supermarkets, shopping centres and markets are now not as busy as before.

Before the sudden increase in the price of milk, Ms. Thu Muoi residing in My An Ward, Ngu Hanh Son District has no choice to change the type of milk for her children from more than VND400,000 /can to only around VND300,000/can, whilst other foods such as whey, yogurt and fruit are also added alternately instead of on a daily basis as before.

She also appealed for more next-door neighbours in the same neighborhood to buy vegetables and meat in bulk to get cheap wholesale prices.

“This is only a short-term adaptation measure. I hope the authorities will stabilise the prices of items so that people can rest assured”, said Muoi.

In the same point of view, Ms. Hong Lien dwelling on Thu Khoa Huan Street, Son Tra District has opened a small cafe in front of her house, mainly selling to neighbours at the affordable price of VND10,000 for a cup of black coffee and 12,000 VND for milk coffee.

“Every day I only sell 20-30 cups of coffee, enough for the purchase of food in onw day. In the wake of constant petrol price hikes, everything has increased, for example, Trung Nguyen Creation 1 coffee was priced at only VND120,000/kg before, now it is set at VND148,000/kg, and similarly, condensed milk and sugar went up in price. While I only sell to regular customers, it's difficult to raise the price”, complained Ms. Lien.

The increase in commodity prices also has a great impact on small businesses. Ms. Nhe a fish trader touting for business at the An Hai Dong wet market, Son Tra District, complained that, seafood output decreased whereas prices increased because boat owners limited heading out to sea because of great pressure triggered by fuel price hikes.

Meanwhile, the owner of a grocery store on Nui Thanh Street, Hai Chau District shared that commodity prices are increasing day by day, but buyers are tightening spending.

On average, each product, the stores only make a few hundred to several thousand VND in profit, not to mention the electricity bill for maintenance, but now customers take any purchases into account.

Reporting by QUYNH TRANG - Translating by A.THU