Local businesses feel sense of relief amid lower petrol prices

Ngoc Mai - Khac Kien 21:54, 2022/07/13

Lower petrol prices help businesses keep their products price at an affordable level and boost domestic consumption.

Lower gas prices in recent days have eased some of the burdens of rising operating costs for local businesses.

Production at Hanoi CNC Accurate Mechanical Company. Photo: Khac Kien

Director of the Hanoi CNC Accurate Mechanical Company Nguyen Minh Chau said as businesses are still struggling with the Covid-19 impacts, high petrol prices have been a major concern for many.

On July 11, retail prices of petrol and diesel products in Vietnam took a major downturn with a decrease of VND800-3,110 per liter. Under the latest adjustment, prices of biofuel E5 - RON92 declined by VND3,110 to VND27,780 (US$1.19) per liter, and RON95-III by VND3,090 to VND29,670 ($1,27).

With such decreases, petrol prices now stand below the VND30,000-mark per liter, equivalent to the mid-March prices.

“A recent sharp drop in petrol prices would benefit both the people and business community,” Chau told The Hanoi Times, adding that he expects prices to fall further.

General Director of the Japanese restaurant chain TAKUMI Nguyen Duc Binh added rising petrol prices have led to high business costs, including 25-50% increases in prices of Japanese fish imported from Japan.

“If the petrol prices keep rising, eventually it would come to a point that we have to raise our prices to keep the business operation afloat,” Binh told The Hanoi Times.

Binh added as petrol prices have now gone down, prices of food ingredients have also been adjusted accordingly, and ease the pressure on the catering services.

According to the Head of the Consultancy board of the Hanoi Association of Small and Medium Enterprises (Hanoisme) Trinh Thi Ngan, petroleum products make up a major part of the transportation and logistics costs of businesses.

“Businesses are having a hard time staying profitable given the dual impacts of Covid-19 and rising petrol prices,” Ngan told The Hanoi Times.

“A lower petrol prices would help businesses keep their products price at a more affordable level and boost domestic consumption, in which transportation and services sectors are the first to benefit from the situation,” she added.