The retail prices of gasoline and other petroleum products have been cut for another time, by VND300-700 a liter, following the latest trend of the commodity on the world market.
The price cut decision, made by the Ministry of Finance, took effect at 4:00 pm on Thursday.
Accordingly, A92 and A95 gasoline prices saw the sharpest cut of VND700 a liter to VND21,200 a liter and VND21,700 a liter respectively.
The respective prices of diesel oil and kerosene were cut by VND400 a liter and VND350 a liter to VND21,200 a liter and VND20,050 a liter.
Fuel oil saw the slightest cut of VND300 a liter to VND17,950 a liter.
The price adjustment took place in the context that the world oil prices continued to fall.
According to Petrolimex, biggest Vietnamese fuel importer/trader, the Ron 92 gasoline price in Singapore market, the supplier for over 40 percent of local demand, on Wednesday was $99.1 a barrel, down more than $20 a barrel month on month.
The price of kerosene, 0.05 S and 0.25 S diesel oil and in Singapore market also plummeted to $110.98 a barrel, $112.62 a barrel; and $111.69 a barrel.
Local petroleum wholesalers on Wednesday also admitted that they are enjoy a profit rate of VND700-2,100 per liter of petroleum product sold.
Thus, in almost 2 months, the retail prices of gasoline have been adjusted down 4 times with a total reduction of VND 2,600 a liter.
Previously, the price of gasoline increased 2 times in March and April with a total increase of VND 3,000 a liter.
World crude oil prices tanked on Thursday (local time) after US announced an increase in its oil stockpiles and the US Federal Reserve mentioned no new round of economic stimulus in a near future.
New York’s main contract, light sweet crude for delivery in July, tumbled $2.23 to close at $81.80 a barrel, and Brent North Sea crude for August In London trade settled at $92.38, down $3.07 day on day.
The Fed has wrapped up a two-day policy meeting announcing it would extend its bond-swap program, known as “Operation Twist,” until the end of the year instead of ending at the end of June.
Some market participants have hoped that the Fed would unleash a new round of bond purchases, or quantitative easing (QE). The previous two QEs had stimulated worldwide investment in dollar-backed commodities.
Previously, crude oil prices slid with traders taking profits from gains won in New York overnight on hopes of fresh stimulus measures from the Fed, according to AFP.
New York's main contract, light sweet crude for delivery in July, dropped $1.03 to $83.00 a barrel.
Brent North Sea crude for August shed 68 cents to $US95.08 in London afternoon deals.
The losses came after a rally on Tuesday fuelled by talk of Fed action, an anticipated new round of QE, to boost the flagging US economy, also the world's biggest oil-consuming nation, Jason Hughes, head of premium client management for IG Markets Singapore, told AFP.