Fuel Costs Hit Gig Workers in Vietnam Amid Iran War Fallout

Vietnam’s Diesel Prices Skyrocket Amid Iran Blockade of Strait of Hormuz

Fuel prices in Vietnam have surged significantly, with diesel prices more than doubling and petrol prices rising by nearly 30 percent. The increase is largely attributed to the blockade of the Strait of Hormuz by Iran, which has disrupted oil shipments from Kuwait, a major supplier to Vietnam.

According to e-hailing driver Nguyen, who connects passengers via the locally developed super-app Be, the high fuel costs are affecting his earnings significantly. He reported spending half of his earnings on petrol after ferrying passengers for around seven hours, resulting in a loss of 120,000 Vietnamese dong ($4.56).

The government has implemented emergency measures to mitigate the impact on citizens. Prime Minister Pham Minh Chinh announced the suspension of an environmental tax on diesel, petrol, and aviation fuel until April 15 to help stabilize prices.

Nguyen Khac Giang, a visiting fellow at the ISEAS-Yusof Ishak Institute in Singapore, stated that authorities have taken action to address rising discontent among citizens. The economist noted that gas prices are a significant concern for many Vietnamese people, as they contribute substantially to living costs.

The government’s decision to suspend the tax has resulted in an estimated $273m loss in revenue. However, signs of strain are emerging across the economy, with public transportation facing capacity issues and domestic carriers reducing flights.

Gig workers, who have minimal labor protections, are particularly vulnerable to the fluctuations in fuel prices. Research fellow Do Hai Ha at the University of Melbourne stated that their income is subject to factors beyond their control, leaving them without a guarantee for minimum wages or overtime pay.

Companies, including bus operators and fishermen, are also feeling the effects of the surge in diesel prices. Anh Dao, who collects fares on Ho Chi Minh City’s bus route 13, reported that the operator has been losing money despite raising ticket prices by 3,000 Vietnamese dong ($0.11).

The situation is having a significant impact on various sectors, with many individuals and businesses seeking alternative options to cope with the rising fuel costs.

Source: Al Jazeera