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Soaring petrol prices drive riders to plug in

As of Monday, gas and oil prices saw a record increase of 31 percent, and electric bike shops in HCM City and Hanoi are reaping thebenefits."My modest salary isn't enough for a motorbike given the recentescalation of petrol prices," said Pham Huy Tung, an employee of aprivate enterprise.Tung explained that last month, the price of oil on the globalmarket had spiked, impacting local prices in Vietnam, so manymotorists could no longer afford the cost of driving. Like him theyopted for an alternative - the electric bicycle. The electricity cost for each bike is around VND2,000 per day, fivetimes cheaper than the daily cost of petrol for a motorbike.A manager at Martin 107 Co bicycle shop, Ho Thi Thu Suong, saidthat their number of customers had increased dramatically due tooil prices. Martin had sold between 15,000 and 20,000 electricbikes, an estimated 10 per cent increase."The quantity of electric bikes is increasing though the presentprice is about VND6.2 million (US$382), up VND200,000 per bike frombefore petrol rose," said a salesman at Thong Nhat Motorbike andBicycle Co on Ba Trieu Street in Hanoi.The situation is similar in HCM City, where various shops reportedan increase of sales from 30-50 per cent in the days following theprice hike.A bicycle shop on Vo Thi Sau Street in District 3 said manycustomers visited the shop after the petrol price rose VND4,500(US$0.3).Most of them were students, housewives and government officials.Nguyen Kieu Tien, a telephone company switchboard operator, saidshe decided to buy a bicycle, rather than use her motorbike, toride to work."I live in District 7 but work on Hai Ba Trung Street in District1. I now have to spend VND53,000 ($3.1) to buy petrol instead ofVND35,000 ($2.1). So I have decided to buy a bicycle to savemoney," she said.Smuggled inElectric bicycles jumped so much in popularity all over the countrythat smuggling of used and electric bicycles over the south-westborder with Cambodia grew as well.There are six warehouses in Ta Mau Market on the Cambodian sidebursting with bicycles ready to be smuggled into Vietnam.The owner of one of them said he can supply any number.Second-hand bicycles from Japan and Thailand are also flooding intoVietnam.Depending on their quality and style, the price ranges fromVND900,000 to VND3 million.According to forecasts, the surging price of oil and gas togetherwith the upcoming school year may further boost the number ofelectric bicycles sold.Petrol sales down.Because of higher prices and more bicycle sales, - sales of petrolhave gone down, market observers have said.Le Thi Anh Man, deputy director of Sai Gon Petrol, said 40 generalagents and 100 direct agents working for Sai Gon Petrol said saleshad fallen 30-40 per cent, which represents 400-500 cubic metres aday."Petrol for VND19,000 ($1.14) a litre is not available anymore,"she said.According to a survey of several petrol retailers, the volume ofpetrol sold in the last several days has dropped about 20-30 percent.The return to bicycles, which were once very popular in Vietnam, isconsidered an encouraging development given the mounting concernover air pollution from motorbikes in urban areas.(Source: Viet Nam News)