Dollar hike pushes imported fuel costs

Fuel traders increased their pump prices for the eighth time this year on November 20, but since then the dollar hike has added VND500-600 per liter to gasoline cost, local newswire VnExpress reported Friday, citing Petrolimex Deputy General Director Vuong Thai Dung as saying.

The central bank in late November devalued the dong by more than five percent against the dollar to reduce the gap between official and black-market rates.

Fuel traders still incur losses and cannot cut retail prices now, Dung said, denying claims that they were enjoying huge profits.

He said traders had already disclosed how they calculate fuel prices and thus consumers would know when they actually make profits.

Oil fell for seven straight sessions on concerns over global oversupply on Thursday, dipping below $70 for the first time in two months, according to Reuters.

From December 15, fuel product distributors in Vietnam will be allowed to raise pump prices automatically without seeking government consent if world prices rise by 7 percent or more.

Source: Thanh Nien

Tags: vietnam dollar price, Vietnam imported fuel costs