Feature: Vietnamese people grumble about simultaneous hikes in fuel, electricity prices

Many Vietnamese are feeling the pinch after recent hikes in prices of fuel and electricity, which happened almost simultaneously.

Vietnam's domestic price of petroleum increased by 1,616 Vietnamese dong (7.57 U.S. cents) each liter to 17,286 Vietnamese dong (80.96 U.S. cents) per liter on March 11. Later on March 16, the price of electricity went up 7.5 percent against the previous level to 1,622 Vietnamese dong (7.6 U.S. cents) per kWh.

Vietnamese citizens expressed their worries over the recent hike in petroleum and electricity prices, while anticipating price hikes.

Nguyen Van Thinh, 57, a motor taxi driver, told Xinhua that " local people, especially those small tradesmen like me, will be much affected by the increases."

"Despite knowing that the hikes of these items are part of the government's roadmap, I think the increases, if not happening at the same time, will cause less shock to residents," said Thinh.

"My wife, who goes to market to buy things every day, told me that due to the increases in petroleum and electricity prices, prices of a variety of items such as food, vegetables, consumer goods have gone up," Thinh said in a sigh.

Sharing the same view with Thinh, Nguyen Mi Ha, 22, a newly graduated student, said she felt "miserable" after the rise in electricity and petroleum prices.

"In the past, each time after refueling my motorbike, I could travel for a week. Now, with the same amount of money for fuel, I can only ride for four days," Ha told Xinhua.

"As a new graduate, I must tighten my belt for all expenses including room rental, bills for electricity, water, petroleum, and food among others," Ha said.

The recent increase in petroleum price is attributed to increase in environmental protection taxes included in each liter of petroleum.

However, Ha doubted whether the environment she is living will be cleaner thanks to the petroleum price increase.

Nguyen Duong Le Huyen, 31, a communication officer in Hanoi, was also unhappy with the increases. "Consumers like me wonder the basis on which the prices are calculated," he said, adding that the constant adjustments in petroleum prices result from state monopoly, which is optional and ineffective.

In addressing public inquiry over simultaneous price hike of two important input items amid Vietnam's harsh business and production situation, Nguyen Anh Tuan, head of the Ministry of Finance's Price Management Department said on local VNExpress online newspaper on Monday that it was only "a coincidence."

The adjustment in electricity price has been planned for a long time while that of petroleum prices follows movements of world market, said Tuan.

According to Vietnam's General Statistics Office, the hike in electricity prices can push an increase of 0.46 percent in the country's consumer price index (CPI) while that of petroleum prices will lift CPI up 0.4 percent or more.

Regarding public worries over chain reaction in prices of other items, Tuan said the ministry has adopted measures to prevent it from happening. Endi