Minister praises role of fund in keeping petrol prices down

If it were not for the price stabilisation fund, petrol and oil would cost VND1,500-2,200 per litre more, said Finance Minister Vu Van Ninh.

Ninh said the fund was governed by the Ordinance on Price and that it limited the number of times petrol and oil prices could be raised.

Under Decree 84, traders can increase their retail prices by 7 per cent if world prices rise by a similar amount within 30 consecutive days. If world prices rise by 7-12 per cent, traders are permitted to increase prices by 7 per cent plus 60 per cent of the surplus. The balance will come from the petrol price stabilisation fund.

If world prices increase more than 12 per cent, the State will reduce the import tax. Since October, world prices surged several times, forcing the Government to intervene, Ninh said.

If the price of petrol and oil on the domestic market jumped by VND1,500-VND2,200 per litre, it would have a negative impact on standards of living and business, he said.

Petrol and oil prices in Viet Nam were lower than those in other countries in the region, he said. In Singapore, a litre of petrol costs VND26,000, while in China and Laos its costs VND20,000. Meanwhile, in Cambodia, a litre of petrol costs VND21,000 and VND19,800 per litre in Thailand.

Ninh said that when the world price of petrol and oil surged, dealers were not allowed to increase local prices straight away. A litre of petrol in Viet Nam costs VND16,400-VND16,900, a litre of diesel costs VND14,750 while a litre of kerosene is VND15,100 and fuel oil costs VND12,990 per litre. — VNS

Tags: Vietnam petrol, Vietnam Petrol prices