The sharp fall in fuel prices has caused the prices of goods such as vegetables and meats to decrease in HCM City supermarkets.
Petrol prices have fallen four times since June 21 and by a total of 22 per cent, bringing cheer to the public and businesses again by reversing a long period of rise.
Fuel prices have decreased to January levels, with E5 petrol now costing VND24,629 per litre, RON95 costing VND25,608 and diesel costing below VND25,000 per litre.
The prices of a number of fresh food products, including meat, fish, seafood, vegetables, and fruits, have fallen by 10 per cent at Big C supermarket.
Some such as chicken wings and feet, frozen salmon and basa fish are another 5 per cent cheaper if customers buy three kilogrammes or more.
MM Mega Market, Emart, Aeon, Co.opmart, and Satra are offering discounts of up to 60 per cent on some items, and an average of around 10 per cent on food items.
But at traditional markets, the prices of most items have yet to decrease.
Tran Thi Hoa, a trader at Binh Thoi Market in District 11, said the prices of some pork products had increased by 15 per cent and she could not understand why pork prices had not fallen though fuel prices had dropped sharply.
Economists say the low prices need to last at least half a month before an overall price adjustment occurs, so no one should expect the prices of goods and services to decline immediately.
At traditional markets in HCM City such as Vuon Chuoi (District 3), Nguyen Tri Phuong (District 5) and Binh Thoi (District 11), the prices of vegetables, pork and chicken remain high.
Lettuce costs VND60,000 VND per kilogramme, and tomatoes and onions remain at VND30,000-50,000.
Analysts say pork prices increased slightly at wholesale markets due to a lack of supply.
Chicken eggs cost VND44,000-50,000 for a box of 10 at many markets.
Pham Thanh Hung, vice chairman of Ba Huan Joint Stock Company, said the reduction in petrol prices could had brought down freight rates, but in the case of many foods such as poultry eggs and meat, they account for only a small proportion of costs.
The prices of animal feed had been increasing rapidly due to the disruptions in the global supply chain, and so it would be difficult to lower egg prices, he added. — VNS