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Petrol and oil prices increase, putting pressure on industries

Facing the impact of rising gasoline prices, many consumer goods, and especially transportation charges, have greatly affected the activities of production and business enterprises. Many businesses have to rebalance operating costs


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Gasoline prices increase causes costs and many items to increase

Fuel prices are constantly at a high level, as well as the prices of commodities and input materials also increase, causing businesses, especially businesses in the field of trade and services to "stretching" to be able to bear the burden to maintain the output prices or raise prices as appropriate as possible to retain customers.

 

Mr. Nguyen Xuan Cu, Director of Phu Cuong A Road Transport Company Limited (Bien Hoa City) said that the company currently has about 70 trucks. Due to the high price of gasoline and oil, from the beginning of 2022 to now, the company has to announce a one-time increase in freight rates with an increase of about 10% compared to before. Meanwhile, the demand for transportation services has somewhat subsided.

 

“Fuel prices are high, but the company must calculate to increase freight rates as low as possible, as well as continue to reduce operating costs, accept unprofitable activities during this period to keep customers, ensure the salary level for drivers and employees of the company "- Mr. Cu added.

 

Similarly, Mr. Le Van Dinh, Director of Quang Dinh Transport Company Limited - a company that has a car park in Bien Hoa 1 Industrial Zone, said that petrol prices are still anchored at a high level, making the transport business at this time like "sitting on the fire." The company is having to reduce the number of vehicles, restructure business activities, minimize related costs, and try to overcome the difficult period.

 

Meanwhile, one of the areas most affected by rising prices is service activities, especially for businesses and food service businesses.

Mr. Do Duc Huy, manager of a chain of restaurants in Bien Hoa City, said that the increase in consumer prices, especially the price of gasoline, oil and gas fuels has been continuously high in recent years, causing the chain's profit has been reduced by 15-20%. This is the common situation of many businesses and food service households since the Lunar New Year. "The chain of stores is forced to rebalance personnel, as well as promote sales options through the application (app) and order online to reduce direct operating costs" - Mr. Huy expressed.

 

Similarly, Mr. Nguyen Van Son, owner of a restaurant in Hoa An Ward, Bien Hoa City, said that the business situation of the current restaurants is like "hundreds of mulberries pouring on silkworm heads". The prices of foods, goods, even bags of ice have increased steadily, but he cannot increase the prices on the menu because he is afraid that customers will say "expensive" and stop coming, while the restaurant business still has a lot of categories to pay such as premises rental, salary for personnel, electricity and water fees, etc.

“The current restaurants and eateries have tried to convert their models to online businesses, but it is very difficult for a family restaurant like me to approach. Therefore, I am currently calculating to make the most of the business space, promote take-out sales to save operating costs," said Mr. Son.

 Phan Anh

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