Vietnam cuts imported petrol tax by 6%

Vietnam reduced the imported tax on petrol by a half to 6% from 12%, effective from 1 Jan 2011, the Ministry of Finance(MoF) announced on late December 22.

The tariff on kerosene and diesel will fall to 2% from the current tax of 5%, MoF said.

The tax cut came out as the imported fuel has sharply increased recently. The petrol dealer quoted petrol A92 price of $95.65 a barrel and oil price of above $100 a barrel.

The tax on imported fuel was cut down by 5% to 12% from December 1, the Ministry of Finance announced in the Circular 190/2010/TT-BTC. However, local petrol firms are selling retail fuel at loss of around VND2,000, MoF said.

The domestic petrol prices of Vietnam will be kept stable until Tet holiday, the country’ traditional New Year festival, Nguyen Tien Thoa, Head of Price Control Department under the Ministry of Finance said on December 6.

The local gasoline firms have received a subsidy from gasoline stabilization funds of VND1,050 billion out of VND3,619 billion.

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 said.- stoxplus.com

Tags: Vietnam Petroleum, Vietnam petroleum imports