Vietnam Fin Min rejects petroleum price hike by Tet Holiday

The Vietnamese Ministry of Finance has turned down petroleum traders’ proposals to raise retail prices, an official said.

Nguyen Tien Thoa, director of the ministry’s Price Management Department was cited by the Tuoi tre newspaper as saying Monday that no petroleum price increase will occur in the country by the Tet holiday.

Regarding a rumor that a petroleum stations stops business as traders cut commission to agents, Thoa said the Ministry of Industry and Trade should probe in the case to ensure petroleum supply.

He added that the department is not responsible for managing commissions to agents but enterprises and agents themselves make negotiations.

The Ministry of Finance decided to slash the import taxes on petroleum products by 5% from Dec. 1 in order to prevent retail price hikes and to stabilize the domestic market.

As a result, import tariffs on engine gasoline including plumbiferous and unleaded gasoline, jet fuel, Tetrapropylene, white spirit, oil with averaged boiling points and its fished products are reduced to 12%, Kerosene to 10%, diesel oil to 5%, and on other fuel to 7%.

On August 9, the traders raised prices of gasoline A95 by VND410/liter or 2.48% to current VND16,900/liter and gasoline A92 by VND410/liter or 2.56% to current VND16,400/liter. Prices of other oil products were up by between 1.48% and 2.72%.

Experts are wondering about the market mechanism in petroleum price regulation in the country when all 11 traders are applying the same prices.

Tags: Vietnam petrol, Vietnam Petrol prices