Local fuel firms call for raising petrol prices by VND3,000/liter

Local domestic fuel traders is calling for raising the petrol prices by around VND3,000/liter as they are selling at loss of VND2,700/liter or 17%

Local domestic fuel traders is calling for raising the petrol prices by around VND3,000/liter as they are selling at loss of VND2,700/liter or 17%, the online newspaper Danviet quoted Vuong Thai Dung, Deputy General Director of the state-owned Vietnam National Petroleum Corporation (Petrolimex), the national biggest petroleum trader as saying on February 16.

“Each day, Petrolimex loses VND70 billion and other firms lose around VND30 billion”, Bui Ngoc Bao, General Director of Petrolimex

The recent devaluation of VND up to 9.3% and the higher world prices of petrol of around $105.37/barrel for Ron 92, raising the production cost of petrol to VND19.117/liter instead of the current prices of VND16,400/liter, Dung said.

Currently, a liter of gasoline A92 is sold at VND16,400, gasoline A95 at VND16,900, diesel 0.25S VND14,700, diesel 0.05S VND14,750 and kerosene VND15,100, Petrolimex quoted.

“The fuel stabilization fund is likely not to resist anymore” , Dung added.

“ The domestic retail prices of petrol will rise at least VND2,900/liter to cut losses of local firms”, said Vuong Dinh Dung, Director of Military Petroleum Company.

The country 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.

Earlier, on February 2, Danviet quoted an official of the Ministry of Industry and Trade that 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.

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 and the plan to raise the electricity and petrol prices has been pressuring on price levels. – Stoxplus.com

Tags: Vietnam fuel prices