Nhan Dan - The retail prices of oil products in Vietnam rose by up to 12% yesterday following a decision by the Ministry of Finance (MOF).
A92 petrol was raised from VND20,800 per litre to VND22,900 while mazut jumped by 12% to VND18,800 per litre.
Kerosene rose by 3% to VND20,800 per litre and diesel increased by 5% to VND21,400 per litre.
This is the first major fuel price hike in 2012 since a price cut last year.
On the same day, the MOF also cut import duty on several oil products to 0% and reduced petrol subsidies to VND300 per litre.
The MOF said the price hike will help importers offset losses due to rising oil prices on the world market and discourage petrol smuggling across the borders to neighbouring countries.
However, experts are concerned that the surprise price increase may push up inflation in March.
In February, Vietnam’s inflation rate was brought down to 16.85%.
Inflation in the country last year hit a record high of 18.58%.