Customers shop for Tet (Lunar New Year) in HCM City (Photo: VNA)Hanoi (VNA) - Businesses are tryingto keep the prices of consumer goods down despite recent fuel price hikes.
The price of E5 RON 92 petrol was increased onJanuary 19 by 429 VND to 18,672 VND (82.3 US cent) per litre, and experts saidthis hike just before Tet would have a knock-on impact on the prices of manygoods.
Since the prices of electricity and fuel make uparound 5 percent of the production cost of a number of essential goods, thefuel price rise would cause the prices of other goods to increase by 3-4percent.
According to the Ministry of Industry andTrade’s Department of Domestic Market, the prices of essential goods for Tetsuch as pork, fruits and vegetables can rise by 15-20 percent, while the pricesof confectionery, wine and beer and other beverage are expected to see smallerincreases.
Since global fuel prices have shown no signs offalling, relevant agencies should consider measures like lowering tax anddiscount rates for oil distributors to keep fuel prices steady in the domesticmarket, a ministry spokesman said.
Trade expert Vu Dinh Phu said the best solutionis to not hike fuel prices, with authorities using price stabilisation funds tokeep fuel prices steady.
Many businesses said the recent fuel price hikehas not yet affected the prices of essential goods since they had stocked largevolumes for Tet.
But the prices of some other essential goodslike fruits, vegetable, fish and meat could now rise by 10-15 percent inwholesale markets, they said.
Some businesses said they would settle for lowerprofits since they had promised customers they would not raise prices for Tet.
A spokesman from Big C said the supermarket iscommitted to keeping the prices of some 11,300 kinds of goods unchanged untilthe last day of this lunar year. Thus, the prices of these goods would not behiked even if fuel prices affect their prices in the market, he said.
While saying the cost of raw materials,electricity and others affect the prices of its products, the Sai Gon Food JSCalso promised it would not hike prices during Tet.
Most retailers stockpiled goods a month ahead ofthe festival, and as a result many shopping centres and malls will continuewith their promotion campaigns until Tet.
Prices of frozen goods including pork, beef,fish, chicken have remained unchanged and experts said a week before Tet theirprices at supermarkets could be 10,000-20,000 VND per kilogramme cheaper thanin traditional markets.
But the prices of these goods could rise afterTet due to the higher transport costs.
At a recent seminar, Nguyen Tien Thoa, General Secretaryof the Vietnam Association for Prices Assessment, said the prices of goods areexpected to remain steady in 2018, but a number of public services such aselectricity, water and education and healthcare could become dearer.
Therefore, oil firms should only raise fuelprices at “appropriate” points of time, he said.
“Firms should not announce a fuel price hikebefore Tet when power demand is on the rise.”
In the long term, measures should be taken toreduce costs for businesses, including by reducing taxes and fees, he said.
Relevant agencies should consider initiatives tolower interest rates on bank loans, he added.-VNA
The price of E5 RON 92 petrol was increased onJanuary 19 by 429 VND to 18,672 VND (82.3 US cent) per litre, and experts saidthis hike just before Tet would have a knock-on impact on the prices of manygoods.
Since the prices of electricity and fuel make uparound 5 percent of the production cost of a number of essential goods, thefuel price rise would cause the prices of other goods to increase by 3-4percent.
According to the Ministry of Industry andTrade’s Department of Domestic Market, the prices of essential goods for Tetsuch as pork, fruits and vegetables can rise by 15-20 percent, while the pricesof confectionery, wine and beer and other beverage are expected to see smallerincreases.
Since global fuel prices have shown no signs offalling, relevant agencies should consider measures like lowering tax anddiscount rates for oil distributors to keep fuel prices steady in the domesticmarket, a ministry spokesman said.
Trade expert Vu Dinh Phu said the best solutionis to not hike fuel prices, with authorities using price stabilisation funds tokeep fuel prices steady.
Many businesses said the recent fuel price hikehas not yet affected the prices of essential goods since they had stocked largevolumes for Tet.
But the prices of some other essential goodslike fruits, vegetable, fish and meat could now rise by 10-15 percent inwholesale markets, they said.
Some businesses said they would settle for lowerprofits since they had promised customers they would not raise prices for Tet.
A spokesman from Big C said the supermarket iscommitted to keeping the prices of some 11,300 kinds of goods unchanged untilthe last day of this lunar year. Thus, the prices of these goods would not behiked even if fuel prices affect their prices in the market, he said.
While saying the cost of raw materials,electricity and others affect the prices of its products, the Sai Gon Food JSCalso promised it would not hike prices during Tet.
Most retailers stockpiled goods a month ahead ofthe festival, and as a result many shopping centres and malls will continuewith their promotion campaigns until Tet.
Prices of frozen goods including pork, beef,fish, chicken have remained unchanged and experts said a week before Tet theirprices at supermarkets could be 10,000-20,000 VND per kilogramme cheaper thanin traditional markets.
But the prices of these goods could rise afterTet due to the higher transport costs.
At a recent seminar, Nguyen Tien Thoa, General Secretaryof the Vietnam Association for Prices Assessment, said the prices of goods areexpected to remain steady in 2018, but a number of public services such aselectricity, water and education and healthcare could become dearer.
Therefore, oil firms should only raise fuelprices at “appropriate” points of time, he said.
“Firms should not announce a fuel price hikebefore Tet when power demand is on the rise.”
In the long term, measures should be taken toreduce costs for businesses, including by reducing taxes and fees, he said.
Relevant agencies should consider initiatives tolower interest rates on bank loans, he added.-VNA
VNA
