Fuel prices down further on world fall
By Minh Tam - The Saigon Times Daily
HCMC – The Ministry of Finance decided on Thursday to cut fuel retail prices in response to falling world oil prices.
Gasoline is down by VND800 per liter, and kerosene, diesel oil and fuel oil by VND650-700. The new prices came into force at 2:00 p.m. on Thursday.
The popular A92 gasoline is down from VND22,700 to VND21,900 a liter. The prices of diesel oil and kerosene were adjusted down VND700 to VND20,500 and VND20,400 per liter respectively while fuel oil was marked down by VND650 to VND18,250.
VND300 for each liter of fuels sold still goes to the fuel price stabilization fund.
Both the Ministry of Finance and Ministry of Industry and Trade, which both decided on the latest fuel price cuts, said the domestic fuel price decline goes in line with global market movements and a Government decree on fuel trading.
This is the third straight time that fuel prices have been marked down within one month with a combined reduction of VND1,900 per liter.
Unlike previous adjustments, the Ministry of Finance this time revises down retail prices of fuels, instead of reinstating the tariff on fuel imports.
However, it is hard to see the decline in retail prices of gasoline going in line with global market movements or not as no audited financial report is released but it is obvious that authorities have yet to make timely fuel price adjustments in recent times, said economist Ngo Tri Long.
In fact, the latest move by the Ministry of Finance to lower fuel prices on Thursday fell behind global movements. For instance, fuel wholesalers reported a profit of several thousand Vietnam dong on each liter of gasoline sold several days ago given the global downtrend but competent agencies took no immediate action.
The issue is attributed to the fact that fuel wholesalers ignore the falling import costs while they want higher prices as soon as the world oil price inches up.
Immediate on the part of authorities plays a vital role in the industry. The sooner fuel prices are marked down, the more benefits consumers and enterprises can get.
As for the reintroduction of the import tax on fuels, Long said it is a good way to generate more revenue for the Government when it is now offering tax exemptions and reductions.