Fares are to shoot up to VND7,000-8,000 per kilometer (around US50¢) by the end of Aug, with petrol prices now up to VND10,000 a liter (63¢) in Vietnam.

This is the second fare increase in a month, announced the HCMC’s Taxi Association Monday.

Fares are to go up by VND363 per km on average, to make up for the 14 per cent rise in fuel prices, said a member of the association’s executive, Truong Quang Man.

The petrol increase from VND8,800 to VND10,000 Aug 17 was the highest single price increase of the last three since March 2005, he added.

The VND500 per km fare hit taken in mid-July has resulted in a decrease in taxi commuting, with Vinasun customers down 5 percent, and Vina taxi down 9 percent since last month.

The fare increases are to hit pocketbooks by the end of Aug. or beginning of Sept. at the latest, according to the association’s chairman, Dinh Quang Hien.

Bus travel follows

The HCMC Department of Transport and Civil Engineering and Saigon Motor Company,

(SAMCO) followed suit adding a hefty 40 percent additional charge on coach fares for the coming holidays, Vietnam’s Independence Day Sept 2.

The Southwestern region coach station planned to apply similar additional charges on all of its routes.

Meanwhile, its Southeastern counterpart was still deliberating whether to apply it on all routes considering the station offers both short and long haul routes to the provinces.

Passenger numbers were predicted to surge for short haul routes only, Nguyen Nam Son, the station’s director explained.

The station is to operate 300-350 extra coaches during the holidays to cater passenger increases likely to hit 20-25 per cent compared to last year’s holiday, particularly on tours, Son added.