Petrolimex to place petrol price calculator on website

The Viet Nam National Petroleum Corporation (Petrolimex) plans to announce ways the public can calculate its petrol and oil retail price, according to the corporation.

“From next week, Petrolimex’s website petrolimex.com.vn will show how to calculate the retail price based on Decree No84/ND-CP on trading petrol and oil issued last December. It will carry details about import prices, taxes, fees, commission for sales agents and costs for ports, warehouses and tanks.

The corporation increased petrol prices by VND590 per litre on February 21 because the world average petrol price had increased to around US$83 per barrel (1 barrel is 159 litres) for a month-long period.

The corporation said the increase was reasonable and that the price rise allowed the company to make a profit of VND100 per litre of petrol sold.

The Ministry of Finance announced in 2009 that tax rates would be based on fluctuations in the import petrol price.

Last week, the Government called on the ministries of Finance and Industry and Trade to monitor adjustments in petrol retail prices. The two ministries plan to change petrol-trading regulations to control inflation.

From last year, petrol retailers were permitted to adjust pump prices in line with global fluctuations under Decree No 84/ND-CP.

According to the decree, petrol traders have to peg prices to wholesale global prices. The decree states that if prices decline by up to 12 per cent, cost savings will have to be passed on to consumers.

If wholesale prices decline by more than 12 per cent, petrol traders are told to cut retail prices after adjustments have been made to import taxes and contributions to the petrol price stabilisation fund.

Traders can introduce retail price increases of 7 per cent if prices of petrol and oil surge by 7 per cent.

If prices rise by more than 7 per cent but less that 12 per cent, traders are permitted to raise prices by 7 per cent plus 60 per cent of anything over 7 per cent.

If wholesale prices increase by more than 12 per cent, the State will use the stabilisation fund and cut import taxes to reduce the price.

Tags: Vietnam petro, Vietnam Petrol prices, Vietnam Petroleum