My Dinh Bus Station is one of the biggest in Ha Noi. It asks all transport firms to register their new fares and freight rates before January 14, failing which they will have to stick to the old rates. Photo soha.vn

HA NOI (Biz Hub) — Many transport firms are planning to adjust their freight and ticket rates after the petrol price was hiked by VND584 (2.78 cent) to VND24,214 ($1.15) per litre on Wednesday.

Chairman of Vietnam Automobile Transportation Association Nguyen Van Thanh said 40-50 per cent of their transportation costs is for petrol, so the price hike will affect transportation services.

"Immediately after the price hike on Wednesday, our association received many calls from businesses asking about the freight rate adjustment," said Thanh.

Thanh noted that transportation firms have been bearing many expenses to continue their operations, and the petrol price hike has caused them to raise complaints with petrol businesses.

The increase in freight rates is a sensitive issue, especially as the approaching lunar new year festival (Tet) draws nearer. Many people from the cities, including workers and students, will be returning home to their families. The price hike will affect them when the ticket fares are hiked.

Deputy-general Director of Hoang Long Transportation Company Ltd Vu Duc Hoang said his company will consider increasing the fares, but the hikes will be calculated according to the routes.

In My Dinh Bus Station in Ha Noi, seven transportation firms reportedly raised their fares by 5 to 13 per cent on Thursday.

The station has asked all transportation companies to register their new fares and freight rates before January 14, failing which they will have to stick to the old rates.

Chairman of Hanoi Automobile Transportation Association Bui Danh Lien said the transportation sector has suffered losses in recent times because of various fees such as the road use fee and bridge fee. A number of companies have had to close shop or merge with other businesses to survive, sell their shares and cut down on trips to maintain their operations.

"After the petrol price hike, each transportation business will have to make its own decision on adjusting the freight rate because if the increase does not suit the passengers' pockets, they will minimise their travel plans. That will reduce the business' revenue," stated Lien. — VNS