Several taxi companies have announced plans to cut fares starting Friday following the ninth consecutive drop in the price of fuel, this year.
Mai Linh, the second biggest taxi company in Ho Chi Minh City after Vinasun, released a statement late Tuesday saying they would reduce their fares by between VND500-2,000 (between 2 and 9 US cents) a kilometer depending on the area and the vehicle used.
Mai Linh fares in HCMC will therefore drop by 2.7 to 3.3 percent to between VND14,500 and VND17,700 (68-83 cents) a kilometer. Customers will continue to pay less for rides in four-seaters than seven-seaters.
Ho Huy, chairman of Mai Linh, told Thoi bao Kinh te Saigon Online that the fares in Ho Chi Minh City will fall by VND500 a kilometer, in Hanoi VND500-800, in Da Nang and Hue VND1,800 and in other localities VND2,000.
Ta Long Hy, deputy general director of Vinasun, said his company will cut all fares by VND500 a kilometer, or 2.7-3 percent, to VND16,000-18,000 (75-85 cents) a kilometer.
That same day, the Ho Chi Minh City Taxi Association asked members to cut their fares according to gas prices.
Companies in Da Nang had already cut their fares by VND500-1,500 a kilometer days before the announcement.
Vietnam increased retail gasoline prices by VND1,430 a liter five times this year, including the record hike of VND410 in July.
That price has fallen nine times since, reducing the price of petrol by VND4,250 a liter.
On November 6, the Finance Ministry asked the Transport Ministry and city/provincial authorities to consider adjusting fares accordingly.
Companies were prompted to act by the latest reduction on November 7, which sent the price of 92-octane (92 RON), the most popular gasoline grade in Vietnam, to VND21,390 a liter and the 95-octane (95 RON) grade to VND21,990, both equal to around $1.
Diesel prices, meanwhile, fell 16 times (by VND3,580 per liter) this year to VND19,190 (90 cents) a liter.