Further slashes in petroleum import taxes

The Ministry of Finance has decided to eliminate tariffs on two more petroleum products beginning on February 24.

From tomorrow, the import taxes on both kerosene and fuel oil will be decreased to zero, from the current 2 per cent. Gasoline and diesel have also seen a complete termination of import tariffs since January 14.

The move is aimed at keeping prices of petroleum stable in the domestic market.

This has been the second import tax reduction on petroleum products this year, and the fourth since December 23.

This trend of waiving taxes on petrol products has already been welcome news for Vietnamese petroleum traders, who have been complaining recently about losses of about VND3,000 per litre of gasoline sold.

From February 11, the ministry has also granted more money to traders from the petroleum price stabilisation fund to help them maintain their enterprises without increasing their selling prices, which are regulated by the government.

Currently, one litre of 92 octane gasoline is sold for VND16,400 ($0.79).This price is lower than in other countries in the region, such as Thailand, where the price is VND19,800 per litre, or China where it sells for VND20,000 per litre.

Many fear that a rise in the price of petroleum products at this time would lead to an increase in the consumer price index (CPI).

The General Statistics Office estimates that, by the end of January, the CPI rose by 1.74 per cent from the month before. The increase from last year was 12.17 per cent, the office added.

Tags: Vietnam Petroleum, Vietnam petroleum imports