Vietnam to increase border patrols to curb smuggling of gasoline to China
Vietnam will step up border controls to prevent petroleum products, such as diesel, being smuggled into China where prices are 10-15 percent higher, the state-run Agriculture newspaper reported Tuesday.
The report said that Prime Minister Phan Van Khai had ordered the tightening of border controls after reports that smugglers were exporting thousands of liters of diesel into China via land and sea channels each day.
A Ministry of Trade official said there were no official figures on the volume of petroleum products being illegally exported in those border areas, because "they are smuggled, and it's very difficult to chase them."
Vietnam has no oil refining facilities and imports almost all of its oil products. The government controls retail prices of all petroleum products, thus ensuring stable prices, despite fluctuating global oil prices.
Currently diesel retails in Vietnam for 5,500 dong (35 cents) a liter, about 2,300 dong (15 cents) lower than the import price.
Vietnam plans to import about 6.4 million metric tons of diesel fuel this year. Comparative figures weren't available.
Reuters - June 14, 2005.
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