On March 8, Mr. Pham Dong Thanh - Chairman of Dak Lak Provincial Business Association (concurrently Director of An Phuoc Automobile Transport Co., Ltd.) said that gasoline and oil prices have continuously increased in recent days, causing many logistics businesses in the area to fall into difficulties.
According to Mr. Thanh, usually gasoline and oil costs account for about 35% to 40% of the total transportation costs of businesses. Especially in the western area of Dak Lak province, costs may be even higher (about 40% to 45%) due to the steep terrain, many remote areas, difficult to move.
The increase in gasoline and oil prices by more than 10,000 VND in just one week has caused the average freight rate to increase by 50,000–60,000 VND, putting great pressure on agricultural purchasing and transportation businesses.
When transportation costs increase, it will lead to an increase in input costs for farmers, such as agricultural materials, fertilizers... Meanwhile, the purchase price of agricultural products must depend on the market, so it cannot be arbitrarily adjusted.
Through research, Dak Lak province currently has about 800 businesses operating in the field of transportation services and logistics.
In the context of a volatile market, Mr. Pham Dong Thanh said: "Businesses in the linkage chain like us need to share difficulties instead of applying a fixed profit formula as before. Specifically, units can consider reducing profits or accepting zero profits for a period of time to wait for the market to stabilize again...
However, besides the adaptation of businesses, the important thing is that the gasoline and oil supply chain is not broken, so that units are assured and flexible in production and business plans," Mr. Thanh said.
From the practical operation of enterprises, Mr. Thanh believes that to reduce intermediary costs, information transparency and transportation optimization are needed.
In which, it is necessary to promote programs to support cooperatives and cooperative groups to apply order management software, trace origin, and connect directly with purchasing businesses.
Logistics is not simply transportation but also reorganizing the entire supply chain in a scientific, economical and sustainable direction," Mr. Thanh said.
Meanwhile, Ms. Nguyen Thi Thu An - Director of Dak Lak Department of Industry and Trade said that the Industry and Trade sector has proactively implemented many solutions to ensure the stable operation of the gasoline and oil market.
According to Ms. An, the Department has issued a document directing the market management force to strengthen inspection, review and grasp the daily gasoline and oil supply situation to promptly report.
At the same time, the unit also maintains a daily periodic reporting regime to the Ministry of Industry and Trade, promptly proposing management solutions when there are fluctuations, in order to ensure gasoline and oil supply to serve the needs of people and businesses in the province.
