Consumer goods market not reacting to fuel price cut

Consumer goods market not reacting to fuel price cut

Despite a plunge in fuel prices since late July, prices of consumer goods have remained consistent, dissuading buyers and limiting purchases.

The prices of vegetables, meat and fish in Hanoi went unchanged from the fourth quarter of 2014 to January 8, 2015, with beef at 170,000 – 200,000 VND (8-9 USD) per kilogram, chicken at 100,000 – 120,000 VND (4-6 USD), and prawns at 400,000 – 460,000 VND (19 – 21 USD) per kilogram.

Although vegetables initially experienced a 10-20 percent decrease in prices, costs have now returned to their higher rates recorded in late 2014, including tomatoes that cost 15,000 VND (0.70 USD) per kilogram or watercress sold at 5,000 VND (0.20 USD).

On the contrary, the transport market has responded to the fuel price decline with nearly 80 taxi operators and 60 transport firms reducing their costs early this year by 3- 15 percent, said Chairman of the Hanoi Transport Association Bui Danh Lien.

Nguyen Manh Tuan, Deputy Director of My Dinh bus station, said many operators have decreased their fares by 4-20 percent.

Within the farming market, low petrol prices have had a marginal impact on cattle feed with an incremental price drop between 0.5 and 1 percent in the fourth quarter 2014, said Chairman of the Vietnam Feed Association Le Ba Lich.

Chairman of the Hanoi Supermarket Association Vu Vinh Phu has called on State management agencies to rearrange the supply chain to ensure goods are made available at affordable prices, especially during volatile times.

Since last July, fuel costs have declined by roughly 8,000 VND per litre (0.3 USD).-VNA

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