Vietnam, which maintains tight control over retail fuel prices, plans to give distributors more autonomy in pricing oil products, a state-run newspaper quoted a government official as saying.
The Phap Luat newspaper quoted Deputy Industry and Trade Minister Tran Van Hieu as saying the ministry had drafted a law to allow distributors to automatically raise pump prices without having to seek approval if world crude prices rise by 7 per cent.
The government would start lowering import tariffs on oil products if world crude oil prices rise more than 12 per cent, said the draft which has been submitted for government approval.
Now oil product distributors have to seek permission from the Finance Ministry and the Industry and Trade Ministry to change their pump prices and there is no formal arrangement linking tariffs to world oil price swings.
Source: Reuters