CPI under control despite petrol price hike: experts

Illustrative image (Source: VNA)

According to the General Statistics Office (GSO), the petrol price hike is likely to affect the market, pushing CPI growth to 0.41 percent in April.

Nguyen Anh Quan, Director of G7 Taxi company, said the increase in fuel price had not affected taxi fares, which have stayed stable in the last 3-4 years.

The firm is considering adjusting taxi fares, he said, but confirmed that the rise will be very slight to remain competitive.

Meanwhile, Nguyen Cong Hung, Chairman of the Hanoi Taxi Association, said the association has encouraged traditional taxi companies to reduce their operations costs, keep fares stable and enhance service quality to preserve their market share.

President of the Hai Phong Road Freight Transport Association Le Van Tien said transport firms will not immediately raise their prices as they have to abide by fares stated in contracts signed with customers. Thus, transportation prices are unlikely to change greatly and will not affect CPI expansion, experts predicted.

GSO General Director Nguyen Bich Lam said in the long term, the CPI of the whole year is under the control of the Government. Functional agencies are keeping a close watch on market development, while focusing on price stabilisation and the use of the petrol price stabilisation fund, he said.

Nguyen Thi Kim Dung, Director of Co.op Mart Thanh Xuan, said that after the petrol price increase was announced, only the prices of foodstuff have increased slightly while those of other commodities were unchanged.

She revealed that some of the firm’s partners mentioned adjusting their products’ prices, but the supermarket negotiated with them to maintain current prices to protect customers.

Vu Thanh Tan, Public Relations Director of Big C, said the firm will seek ways to reduce operational costs to ensure there is no change in commodities’ prices.

Experts predicted that the CPI increase in the second quarter will be higher than the previous quarter, requiring close coordination from the Government.

Vietnam’s petrol production has met 70 percent of domestic demand, they noted, advising the country to keep adequate reserves in case of emergency.

Le Huy Khoi, head of the Department of Market Research and Forecast under the Vietnam Institute of Industrial and Trade Policy and Strategy, said that the CPI of the whole year will be under good control thanks to the experience and careful calculation of authorised agencies.

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