Fuel wholesalers Friday increased fuel retailing prices for the first time after five consecutive price cuts beginning in May. But this time they raised prices by different amounts as they are now allowed to take the initiative in proposing price adjustments .
Taking effect since 10pm Friday, the increase saw prices of A92 gasoline and diesel oil supplied by Petrolimex, the country’s largest fuel wholesaler, rise by VND400 a liter, and kerosene, VND300 a liter.
Meanwhile, PV Oil and Saigon Petro hiked prices of all fuel commodities by VND400 a liter, except for diesel oil.
In brief, A95 gasoline now fetches VND21,500 a liter, A92, VND21,000 a liter, diesel oil, VND20,300 a liter, and kerosene ranges from VND20,150 to VND20,250 a liter, depending on suppliers. (US$1 = VND20,800)
In late June, the Ministry of Finance released a document, stipulating that fuel wholesalers can propose fuel price adjustment through their own initiatives, but have to report the proposals to the ministries of finance and of industry and trade for final decision.
The ministries have recently received wholesalers’ price hike proposals, and have calculated that fuel cost prices were VND390 higher per liter than retail prices. The respective discrepancies for diesel oil, kerosene, and fuel oil were VND412, VND348, and VND71 a liter.
The administrative authorities thus gave the wholesalers the go-ahead to adjust prices in accordance with their proposals.
The wholesalers are also required to be responsible for retail prices, and report to the ministries for monitoring and supervision.
Fuel prices in Vietnam have previously been hiked twice in March and April, gaining a total of VND 3,000 a liter.
The country saw the latest fuel price cut on June 21, when oil and petrol prices were slashed by VND300 – 700 a liter.
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