Vietnam government disagrees with electricity, petrol price hike proposals

Vietnam government disagreed with the proposals to raise electricity, petrol prices, Vu Duc Dam, Minister, Chairman of Government Office, told state-run Vietnam Television at a press conference after Government regular meeting in September.

The Minister also said that the Government does not agree with the fact that electricity and petrol groups excusing loss making to propose for price hike. Raising electricity and petrol prices will threat macro-economy stability as the move would result in massive price hike in other goods, Dam said.

“One of the rooted reasons for inflation is cost push, Vietnam has always had to subsidize prices of essential goods including electricity price. Vietnam is mulling the timing to pursue both curbing inflation, economic stability and approaching market mechanism. Price subsidy can’t last for long”, Dam stressed.

Vietnam’s Decree 84 allows market mechanism under government’s management in oil & gas industry, accordingly, petrol enterprises are allowed to set retail prices. However, the deployment of this decree is not effective. Therefore, the government ordered the Ministry of Finance and the Ministry of Industry and Trade to seriously implement the decree to ensure the transparency of electricity and petrol prices and approaching to market mechanism.

Source Ruby/ News Writer/ StoxPlus

Tags: Vietnam petrol, Vietnam Petrol prices

Posted by VBN on Sep 27 2011. Filed under Energy, Oil-Gas & Petroleum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry