After 4 consecutive price reduction sessions, from a record increase of nearly VND33,000 /liter for gasoline and more than VND30,000/liter for oil, the prices of these much-needed items have dropped to about VND26,000/liter for gasoline and VND25,000/liter for oil. However, the actual prices of goods and freight currently has not decreased according to those of gasoline and oil. Facing this situation, recently, the Prime Minister has directed ministries, branches and localities to strictly control the prices of goods and services after the costs of gasoline and oil dropped sharply in the past operating periods.

People buy goods at the Bac My An Market, Ngu Hanh Son District. Photo: QUYNG TRANG

“Petroleum prices have plummeted; freight should go down accordingly”

Chairman of the Da Nang Road Freight Transport Association To Van Hiep said that the reduction in petrol prices helps people reduce costs. Transportation is the industry that is directly affected by gasoline and oil prices, so this much-awaited reduction is expected to improve the economy in the remaining months of the year. According to Mr. Hiep, the deep drop in petrol prices is creating a positive signal for the people and the business community. However, many businesses believe that it is necessary to further reduce the price of gasoline, especially in the context that the environmental protection tax on gasoline has dropped dramatically from VND 3,000/liter to VND1,000/liter.

Sharing the same view, Mr. Nguyen Khac Hai, the Director of Kim Hoang Ngan Trading and Transport Services Co., Ltd., said that the drop in petrol prices helped the price index to go down and had a great spillover effect on other sectors such as passenger transport, freight transport, logistics, fishing, production and the business activities of enterprises.

Besides, according to Mr. Nguyen Van Hiep, representative of the unit that is constructing the Western Ring Road project, with the above-mentioned reduction, the price of petrol is still high. Petrol price should be around VND22,000- VND23,000/liter. If at this level, the cost of construction and materials will also decrease and the contractor has more options to speed up the construction progress.

Meanwhile, according to Mr. Pham Loi, General Director of Da Nang Transport and Bus Station Management JSC, from the beginning of the year until now, the domestic retail petrol price has been adjusted many times, mainly going up. However, after 4 consecutive declines, gasoline prices have contributed to limiting the negative impacts on the economy due to reduced raw material costs and reduced transportation costs. However, at present, the affiliated transport units have not yet seen the notice of a reduction in transport charges.

Ms. Hoang Thi Huu, a passenger traveling on the Hue - Da Nang route expressed: "The price of petrol has gone down but the travel fare for this route has just been announced to increase by 12-20% compared to the charge from July 24 . We hope that when the price of gasoline decreases, the price of passenger transportation will also reduce so as to stimulate travel demand."

Meanwhile, Pham The Vy, the Director of Da Nang Taxi, said that in the past, the price of gasoline increased but the unit could not increase the fare because to attract customers, so now the price of gasoline has seen a sharp fall, the price is still the same.

People have their motorbikes re-filled at a filling station located on National Highway 14B. Photo: THANH LAN

Commodity prices up or down, not dependent on gasoline prices

A survey on commodity prices on August 5 at some traditional markets in the city showed that some essential items still kept their prices high; however, a few items have cooled down.
Specifically, the price of pork is still kept up by VND10,000 - VND20,000/kg) and chicken meat with the price of VND80,000/kg (up by VND10,000), beef with the price of 270,000 VND/kg. increase by 10,000 VND).

Explaining the reason why the price of goods in the market has not decreased sharply according to the price of gasoline, Ms. Van, the owner of a grocery store at the Bac My An Market said that: “There are some groups of goods that cannot be reduced immediately according to the price of gasoline. For example, since Tet until now, cooking oil has continuously increased in price, sellers like us often import bulk quantities of oil at high prices. I have to sell out of stock before I can import new ones. At that time, if gasoline is still low, the supplier will lower the price, we will make a price fall.

Meanwhile, according to a branch representative of Acecook Viet Nam JSC in Da Nang, the price level of the company's products is set to increase by 6-7% from the beginning of March this year. Petrol prices have recently climbed up, but not strongly enough to pull product prices down again. On the other hand, recently, only the price of gasoline has decreased, while the charge level of raw materials, input costs, logistics and transportation has yet to go down.

Similarly, Mr. Nham Duc Quang, the Sales Manager of Vissan Da Nang branch, said that, to ensure a stable price of goods supplied to the market depends on many factors, not just the price of gasoline. The company made a price increase of 5-10% depending on the item at the beginning of February this year and since then, even though gasoline prices have fluctuated continuously, the company's products have remained stable. The reason is that the company's products are less affected by gasoline prices, but the most important influential factor is input materials.

Deputy Director of the Department of Industry and Trade Nguyen Huu Hanh said that his agency has assigned related units to inspect and control the market of commercial centers, supermarkets, markets to promptly detect acts of speculation and unreasonable price hikes for illicit profits, ensure market stability to serve people's needs well. “During the inspection, if we detect any violations, we will handle them in accordance with the law.", said Hanh.

Reporting by THANH LAN, QUYNG TRANG - Translating by A.THU