Petrol prices on the rise in Vietnam
The Ministry of Trade Thursday finally got the nod from government for a petrol price hike, coming as a surprise to many as it was announced there would be no increase just days ago.
On the same day, trade minister Truong Dinh Tuyen officially signed a decision on petrol retail tariff hikes without the usual press conference to explain the finances behind the move.
Under the decision, gasoline rates will increase by VND1,500 (US$0.094) per liter to VND11,000 ($0.7) per liter of A92; VND10,800 per liter of A90; and VND10,600 per liter of A83.
Kerosene and diesel rates will rise by VND400 per liter to VND7,900.
The decision came into effect starting April 27 – the day minister signed the decision.
Oil prices have been rallying on world markets, with New York crude prices reaching a record high of US$75.35 per barrel on Monday and hovering above $73 a barrel Wednesday, up from $66.74 a barrel early this month.
Volatile global oil has led to importers incurring losses of VND1,500 per liter of petrol and VND1,900 per liter of diesel, literally hundreds of thousands of dollars in losses a day.
In response, the ministry of finance early this month slashed import duties on gasoline and other oil products from 5 percent to zero.
In the wake of a strong rise in world oil prices, the finance and trade ministries have long proposed the government to increase retail rates.
However the government delayed the plan to avoid hurting the interests of consumers and producers.
By Ha Viet - Thanh Nien -April 27, 2006.
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