As
of Wednesday, local cooking gas suppliers announced enormous price increases,
while earlier, milk producers also shocked consumers with their new pricing
scheme.
Cooking gas prices rose by 42,000-45,000 dong
(US$2.16) a 12-kilogram cylinder to 425,000-464,280 dong a cylinder, with
suppliers claiming the soaring import prices, which shot up by $145 a ton month
on month, as the main cause for the hike.
Prices have been hiked as many as three times
within the very first month of this year, with the total increase of 74,000
dong.
Cuong, a gas distributor in Ho Chi Minh City’s
Thu Duc District, said that although he had been informed of the price hike
beforehand, he was still shocked to learn of the new price list provided by the
suppliers.
“I only managed to sell four 12-kg cylinders
today, instead of the usual ten,” Cuong lamented.
Meanwhile, distributors of Saigon Petro
operating in HCM City and the southern province of Long An said they no longer
receive commissions worth 7,000 dong per cylinder as before the Lunar New Year.
Le Thi Anh Man, deputy chairwoman of the
Vietnam Gas Association, said that increasing import prices are not the main
culprit for the skyrocketing domestic cooking gas prices.
“The second cause is that cooking gas imports
are subject to the new 5 percent tariff as of the beginning of this year,
instead of 2 percent,” Man elaborated.
“The association will petition for a tax cut
to support gas suppliers and consumers.”
Powder milk prices skyrocket, too
Milk dealers around HCM City said prices have
risen by 7 to 19 percent, or 10,000 – 100,000 dong, a can since earlier this
week, as the producers have adjusted the product design, enhanced product
quality, and cut commissions.
Vinamilk said one of its new products will be
sold at a 9 percent higher price than the old product line, but are still 40
percent lower than imported products with similar quality.
Enda Ryan, CEO of Mead Johnson Vietnam, said
all of the new products are 10 percent costlier than the old ones, thanks to
their nutritious additions.
“Buying power has slumped due to the
skyrocketing milk prices,” said Tung, a milk dealer in Phu Nhuan District.
“Consumers are extremely hesitant in choosing
the formula milk since an imported product can now cost up to 1 million dong.”
Tuoi Tre
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