Tighter rules on petrol prices

The Finance Ministry has instructed fuel retailers to wait 30 days from their last price rise to raise the cost of petrol and oil.

Previously, they had to wait 10 days.

The instruction, embodied in Official Letter 8984/BTC-QLG, is intended to help curb inflation.

The ministry has also changed the use of its petrol price stabilisation fund so that retailers will now be eligible for compensation of from VND400 (US$0.02) to VND500 ($0.03) per litre of petrol and oil instead of the previous VND500.

Viet Nam Import Export Petroleum Corporation (Petrolimex) deputy general director Vuong Thai Dung said the longer wait between price rises would cause difficulties for enterprises.

“If world prices increase from 5-10 per cent, business will be difficult because a financial loss had not been factored into the yearly financial report,” he said.

The world price for oil was now between $80-86 a barrel and the petrol and oil trading companies were losing VND200-300 a litre.

But his corporation had not yet raised the retail price of petrol and oil.

Prices fell on May 27 and June 8 so that the current domestic retail price for A92 petrol is VND15,990 per litre; VND14,400 per litre of diesel; VND14,700 per litre of kerosene and VND12,500 for oil. — VNS

Tags: Vietnam petrol, Vietnam Petrol prices