HA NOI — The domestic retail price for RON 92 petrol, including value added tax, increased from VND20,800 to VND22,900 (US$0.99 to $1.09) per litre at 4pm yesterday, according to the Ministry of Finance (MoF).
Diesel prices also experienced a rise of VND1,000, from VND20,400 to VND21,400 per litre.
The oil price rose from VND20,200 to VND20,800 per litre while that of mazut increased by VND2,000, from VND16,800 to VND18,800 per kilo. The ministry said it had lowered the import tax on petrol and oil from the current four to zero as of yesterday. In addition, the fund for petrol was reduced from VND1,400 to VND300 per litre, diesel from VND1,240 to VND300 per litre, oil from VND780 to VND300 per litre and mazut from VND1,610 to VND300 per kilo.
The ministry said domestic dealers and distributors have suffered from low domestic retail prices, down against those from countries such as China, Laos and Cambodia.
It said the country was in dire need of petrol price adjustment.
The ministry called for an increase from VND4,200 to VND6,500 per litre dependent on gasoline type and tax.
It added that the hike included 13 to 41 per cent of the adjustment which should have increased under Government Decree 84 to allow businesses to adjust petrol prices when those on the world market fluctuate.
According to ministerial information, the State budget last year decreased by VND20 trillion ($952 million) due to overspending on price stabilisation funds.
Before the price hike yesterday, many petrol stations had shut down temporarily or reduced sales volumes without "rational" reasons.
Vo Van Quyen, director of the Domestic Market Department under the Ministry of Industry and Trade said the ministry would monitor the market regularly to ensure sufficient supplies. — VNS