Taxi fare rises VND1,500/km amid petrol hike

A week after A92 petrol prices increased by VND2,900 per liter, most taxi companies nationwide have applied new fare rates, with an increase of VND1,000-1,500 per km from the old rates.

The Taxi Group said it informed its regular clients about such an increase in fares a few days ago.

For 7-seat taxi cabs, the Group’s new rate for the first 30 km of transport is VND13,500 per km, up VND1,500; and for the next kilometer onwards, the fare is VND10,500 per km, up VND1,000.

For 4-seat taxi cabs, the new fare of VND12,700 is applied for the first 30 km of transport, up VND1,200; and the rate of VND9,500 is applicable to the next kilometer onwards, up VND1,000.

It is impossible not to raise fares as the petrol prices have increased too high, the Group explained. If maintaining the current rates, it will suffer great losses and may face a strike by taxi drivers.

Thu Do Taxi firm has also announced its new fares, with the same increase levels.

However, for 4-seat cabs, an VND1,200 increase in fare is applied for the first 20 km of transport and an VND1,000 increase is charged for the twenty first kilometer onwards.

Do Quoc Binh, chairman of the Hanoi Taxi Association, said, “Given we have faced a great pressure of cost from the rise in petrol prices, if we do not raise fares we will suffer losses.”

Taxi fare is not put under the State’s price management, so when taxi companies want to adjust their fare rates, they are simply required to submit their notice of new fare rates to local financial departments, said an official of the Hanoi Finance Department.

In Ho Chi Minh City, at least 4 taxi firms – Mai Linh, Vinasun, Comfort Savico and Sasco – have registered their new fare rates effective from March 1, with an increase of about VND1,500 per km, according to the HCM City Taxi Association.

The Association also said more than 30 taxi companies with about 10,000 cabs have completed required procedures to apply their new fare rates in a few days to come.