Gasoline and oil prices soaring to an all-time high in Viet Nam are sending all service and commodity costs rising, thus causing more difficulties for businesses and people nationwide, and those in Da Nang are no exception.

Rising gasoline and oil prices are affecting people's daily living costs. People are seen having their vehicles re-filled at a gas station on September 2 Street, Hai Chau District. Photo: THANH LAN

People "tighten their belts"

Nguyen Tan Chau, 36, residing in Khue My Ward, Ngu Hanh Son District, Da Nang, is a worker in the Da Nang Centralised Information Technology Park, while his wife works in the Da Nang Hi-Tech Park, both in Hoa Lien Commune, Hoa Vang District.

Previously the married couple had gone to work on their separate motorcycles. However, in the face of galloping gasoline and oil prices and due to their long travel rides, they have to share a motorcycle to save travel costs.

Workers’ wages are not high, so the increase in gasoline prices has greatly affected the their families’ activities. They have no choice but to "tighten their belts" as all costs are forced to be cut to the maximum, from electricity and water to breakfast and other daily living expenses.

In a similar vein, Ms. Nguyen Thi Na, a resident at K90/9 Phan Thanh, Thac Gian Ward, Thanh Khe District, a worker in the Hoa Khanh Industrial Park also said: “Since the price of gasoline increased, I and my co-worker in the company share a motorbike. It is a bit inconvenient, but in return, the travel cost is halved”.

Apart from workers, a series of production and service businesses, especially transport enterprises, are also adversely affected by the hike in gasoline prices.

Petroleum is an input material for most industries. Increased transportation costs push up the prices of goods and transportation services, while many businesses have not yet been able to restore 100% of their operating capacity after the COVID-19 upheavals.

Mr. Nguyen Khac Hai, the Director of Kim Hoang Ngan Trading and Transport Service Co., Ltd. said that, the sharp increase in gasoline prices caused transportation costs to go up significantly.

Although the company has tried to keep the freight rates unchanged, due to the continuous increase in fuel prices over the past 2 months, it must adjust the freight rates upward or they will lose money.

Mr. Le Van Tu, the owner of a passenger coach travelling on the Da Nang - Nghe An route, said that many passenger transport service providers like him are forced to increase fares, but it will be difficult because people limit travel if it is not necessary in order to save money.

According to Mr. Pham Loi, the General Director of Da Nang Transport and Bus Station Management Joint Stock Company, many coal transport enterprises have faced many financial difficulties because of the continuous increase in petrol prices and some of them have asked for a 7 - 10% increase in ticket prices as compared to the previous year.

Retail industry heavily affected

The Hoa Cuong wholesale market in Hai Chau District is a place specializing in the wholesale supply of fruit and vegetables. The hike in gasoline and oil prices has caused the cost of transporting raw materials from production areas nationwide to this market to climb by 20 - 30%.

Small trader Dinh Thi Xuan, who sells vegetables, onions, and lagim at the market, said that currently, the freight rate for each kilogram of vegetables has increased by  VND800 -  VND1,000/kg. Every day, she imports 2.5 - 3 tonnes of goods, so she must bear a huge transport cost.

“The price adjustment makes trading more difficult as consumption has decreased significantly because people tighten their spending and sellers do not dare to import goods in large quantities”, said Ms. Le Thu, the holder of a fish cake stall at the downtown Han Market.

According to retailers, if gasoline prices continue to remain high, supermarkets will increase the prices of on-display products by 5 - 7% following an upward price from suppliers. However, the commodity price cannot keep up with that of gasoline because if the former rises too high, consumption will no doubt go down as many consumers cut down their spending.

It is suggested that enterprises flexibly use measures to stabilize the market such as reducing profits and intermediaries, thereby keeping product prices at an acceptable level to control inflation.

As recorded at wet markets and shops on the morning of June 14, prices of many foods and spices has been higher than before. In particular, the price of cooking oil of all kinds rose by about 25 - 30% from the beginning of 2022 and climbed by nearly 50% as compared to the same period last year.

Before this year’s Lunar New Year (Tet), the price of a 1-liter bottle of Neptune oil is set at only VND50,000 /bottle, but now it is VND60,000 - VND65,000, Cai Lan oil from VND 35,000 to VND50,000, Tuong An oil from VND45,000 to VND55,000 - VND60,000.

Similarly, fish sauce, monosodium glutamate, instant noodles and other items also have recorded a price rise of 15 - 20% compared to the beginning of this year.

Chicken eggs have also jumped by 40% in prices as compared to the beginning of 2022, whilst the price per kg is priced at VND1,000 - VND2,000, depending on types.

Facing the situation that prices are likely to increase sharply in the coming time, the national overnment and national agencies need to soon take positive solutions to promote a faster economic recovery, thereby implementing supportive policies supporting the disadvantaged in society, hereby helping to stabilize people's lives.

Reporting THANH LAN, QUYNH TRANG, MAI QUE – Translating by A.THU