16:05 | 21/05/2015 Industry
The ministries of Finance and Industry and Trade on May 20 enabled enterprises to increase gasoline prices by VND1,200 (six cents) per litre in the wake of increasing global fuel prices.
The Vietnam National Petroleum Group (Petrolimex) immediately raised their retail price following the decision.
The new prices are VND21,030 (US$1) per litre for RON 95 gasoline, VND20,430 (97 cents) per litre for RON 92 gasoline and VND20,100 (95 cents) per litre for biofuel E5.
The ministries said RON 92 prices hit US$83.97 per barrel in the world market on May 18, and with this, the base price for domestic dealers has been VND2,254 (11 cents) higher than retail levels. The base price is typically calculated based on the import prices plus taxes, costs and profit quotas for fuel dealers.
The ministries added that they tried to curb price hikes by cutting import tariffs for oil products by 2 to 7%, and let enterprises maintain the price stabilisation fund extraction at VND300 (one cent) per litre.
This is the fifth time petrol prices have been adjusted this year, after two cuts and two increases. Petroleum prices were last raised on May 5 by nearly VND2,000 (10 cents) per litre.
Transport operators expressed their intentions to lift their rates following the recent fuel price increases.
On May 20, the ministries also allowed dealers to lift the prices of diesel and kerosene by VND500 (two cents) per litre, and slash the prices of mazut by VND64 per kg. The prices of these products remained intact, though.
As required by authorities, environmental protection taxes have been tripled to VND3,000 (14 cents) per litre for gasoline and VND1,500 (seven cents) per litre for diesel, as of this month.Source VOV News