Vietnam again hikes fuel prices
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Vietnam starting 22:00 on Tuesday hiked fuel prices, again, by up to VND2,800 (US$0.14) per liter, according to the Ministry of Finance.
This is a move, as the Prime Minister has said, to let the fuel prices be determined by market forces.
Global prices have continuously increased due to political crises in the Mideast and Northern Africa since February 24 when Vietnamese fuel firms lifted up their prices by up to 24 percent.
In particular, world oil prices surged 12.63 percent – 17.29 percent between February 24 and March 28 depending on each fuel kind.
The new prices are currently quoted as follows:
- Petrol: VND21,300 ($1.03) instead of VND19,300 ($0.93) per liter (up VND2,000 ($0.1))
- Diesel oil: VND21,100 ($1.02) instead of VND18,300 ($0.88) per liter (up VND2,800 ($0.14))
- Kerosene: VND20,800 ($1.01) instead of VND18,200 ($0.88) per liter (up VND2,600 ($0.13))
- Mazut oil: VND16,800 ($0.81) instead of VND14,800 ($0.72) per kilogram (up VND2,000 ($0.1))
One liter of fuel in the country was VND4,800-7,000 ($0.23-0.34) cheaper than in China, Laos, and Cambodia, which has sparked smuggling in the southern provinces recently, the ministry said.
But fuel is now still VND2,300-5,000 ($0.11-0.24) per liter cheaper in Vietnam than in those three countries after the new adjustment, it insisted.
The newly adjusted prices should be much higher since they just rose by one-third or half of the initially proposed level.
The ministry warned fuel prices would continue rising if world prices increase but noted it would restore import tax and slash prices only on particular conditions when the global prices go down.
The country will step up its effort to prevent any unreasonable hike in the prices of commodities and services after the adjustment, ministries have pledged.
| The three principles The Ministry of Finance cites the following three principles as bases for its major price adjustment: + The government keeps holding the import tax on fuel at zero percent. + Fuel firms are to continue cutting down on their business costs. + No profit for fuel firms is calculated at the moment of the adjustment. |
