Fuel prices likely to rise end-Feb

Vietnam is likely to raise domestic retail prices of fuel at the end of this month due to increasing world fuel prices which is beyond the capacity to handle of fuel price stabilization fund

Vietnam is likely to raise domestic retail prices of fuel at the end of this month due to increasing world fuel prices which is beyond the capacity to handle of fuel price stabilization fund, the online newspaper Danviet reported on February 2, citing the fuel prices supervising group under the Ministry of Finance(MoF) and the Ministry of Industry and Trade(MoIT).

The retail prices of petrol must be kept unchanged until the end of this month at least though they have prepared some options to raise prices, Danviet quoted an official of MoIT.

Earlier,MoF ordered domestic fuel traders to use the stabilization funds to keep the prices of fuel stable, but did not give any exact time the online newspaper DDDN quoted MoF on February 11.

In details, MoF has raised the usage of stabilization funds including petrol ( VND1,650/liter, up VND450/liter), diesel(VND2,300/liter, up VND700/liter), mazut ( VND1,400/liter, up VND700/liter) and kerosene(VND2,150/liter, up VND950/liter).

Vietnam has spent VND11,000 billion to stabilize the domestic fuel prices including VND7,500 billion for tax cut and VND3,500 billion from fuel stabilization funds, Nguyen Tien Thoa, the Ministry of Finance’s Head of Price Control Department said.

The prices of electricity are allowed to be raised from the beginning of March.

The country’s 2011 inflation target is becoming more difficult as the consumer price index(CPI) in the first month of this year stood at the high level of 1.74% while the February CPI is forecast to accelerate sharply due to a long Tet holiday.

The recent devaluation of VND and the coming petrol and electricity prices hike will also pressure on the macro economy of Vietnam in 2011. – Stoxplus.com

Tags: Vietnam fuel prices