Dao Anh Tuan, General Director of Traravico, stated the fare adjustment was an unavoidable decision. This was due to diesel prices reaching 30,230 VND per liter in March as conflict in the Middle East escalated. Compared to late February, fuel prices have surged by 56%. "Compared to the rise in oil prices, a 10% fare increase represents a significant effort by the company," Tuan said.

According to Tuan, fuel costs now constitute 20% of the passenger transport cost structure and 30% of freight transport costs. The more than 56% surge in diesel prices in under 10 days significantly increased the company's operating expenses. Without timely fare adjustments, the company would face an imbalance between revenue and expenditure.

SE3 train at Hanoi station. *Photo: Giang Huy*

Traravico has implemented a daily fuel price monitoring system. The company's leadership pledged to reduce fares immediately if diesel prices show signs of cooling down, ensuring competitiveness and maximum benefits for customers.

The railway company continues to offer discount policies for social welfare beneficiaries. These include a 90% fare reduction for Heroic Vietnamese Mothers and revolutionary veterans active before 1945. Children aged 6 to under 10 receive a 25% discount, while children under 6 travel free. Additionally, students and round-trip ticket purchasers benefit from a 10% discount.

Doan Loan