Vietnam mulls raising fuel circulation fee by 43%

Vietnam is mulling over raising fuel circulation fee to help cover higher transport, logistics costs for oil import companies.

The Price Management Department under the Ministry of Finance (MoF) proposed to raise fuel circulation fee to help cover higher transport costs for oil import companies, The Nguyen Tien Thoa , vice director of the department told local media.

The retail fuel fee will be raised by 43% to VND860 a litter while whole sales fee is expected to rise 25% to VND500.

If the MoF approves the proposal, oil traders will get another VND260/litter fee.

It is feared that oil prices will rise following suit of higher fee.

Experts fear the same fuel circulation norm hinders cost-reducing competition among 11 oil traders, making it hard to reduce retail prices. – Stoxplus.com

Tags: Vietnam fuel, Vietnam fuel prices