The Saigon Times Daily
However, the consumer price index might have been lower if transportation service prices had been slashed in proportion to the fuel price reductions. Consumers are hoping for lower transportation prices as fuel costs account for around half of those prices. Surprisingly, transportation firms, including those providing taxi services, have shown little sign of making real concessions.
Consumers, economic experts and even authorities at local and central levels have frowned on the reluctance of transportation businesses to make a significant move. As the cup of endurance is over, Prime Minister Nguyen Tan Dung has intervened by ordering relevant ministries and agencies to inspect transportation fees to see whether they are overpriced. The Ministry of Transport will be coordinating with the Ministry of Finance to send out inspection teams at the request of the Government leader.
This is a clear indication that transportation businesses are not playing by the rules of the market. Given growing pressure, some companies in 43 of the country’s 63 cities and provinces have revised down their transportation charges but an insignificant range of 1-25%. The many firms that have kept their fees unchanged reason that in previous fuel price cuts, they already lowered fees, leaving little room for further reduction. This argument is not justifiable. Why? Because fuel prices have dropped 15 times but the number of fee cuts by transportation firms is neglectable.
Economist Dr. Ngo Tri Long describes the inaction of multiple transportation companies as unusual. He calls for pricing authorities to promptly conduct inspections and publicize all those businesses found to overprice their services, thereby stepping up pressure on them to act for the benefit of consumers.
Hopefully the Government intervention will end up preventing the consumer from paying the price for what is unacceptably overpriced.
Đăng ký: VietNam News
