Deputy Minister of Transportation Nguyen Hong Truong on November 10 said that there was no excuse for not reducing transportation fares while gasoline prices had declined for the ninth time this year.
The cost for gasoline accounted for 40-50 percent of total cost of a transport company. Therefore, it is obvious that transportation fares should be decreased as gasoline prices have dropped by more than 12 percent, he said.
He added that the transportation fares should be cut in proportion to the decline level of gasoline price. Transport companies need to recalculate their cost prices and adjust fares to ensure passengers’ interests.
Local transport departments have the responsibility to coordinate with provincial People’s Committees and Departments of Finance to periodically check and inspect transport companies, especially in peak season, to assure that transport firms will not raise fares spontaneously.
Departments of Finance are responsible for checking price structure of transport companies and clearing any irrational issue while transport departments, with managerial function, have responsibility to collaborate with the departments of finance to adjust transport fares.
As for this time, authorities will cooperate to point out the influence of gasoline drop on transport and ask transport firms to lower fares.