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Oil price up, gas down: ministries

Update: June, 22/2012 - 10:50

 

A gas dealer in HCM City puts more canisters in its warehouse. Gas distributors yesterday raised the gas price by $0.57 to VND351,000 ($16.71) per 12kg canister. Meanwhile petrol price was reduced by 3 US cents to VND21,200 ($1) per litre. — VNS/VNA Photo Thanh Vu
HA NOI — The retail price of petroleum products yesterday officially decreased according to a decision taken by the Ministries of Industry and Trade, and Finance due to the recent slump in global figures.

As a result, the price of RON 92 petrol went down by VND700 to VND21,200 (nearly US$1) per litre while the diesel price reduced by VND400 to VND20,100 per litre.

The kerosene price shrank by VND350 to 20,050 per litre and the mazut oil price slipped VND300 to 17,950 per kilogramme. The two ministries decided to maintain the contribution of petrol companies at VND300 per litre/kilogramme to the petrol price stabilisation fund.

The move stemmed from the fact that most petrol importers made a profit of VND1,400 per litre due to crude oil prices on the global market fell by 20 per cent in less than two months, hitting around $98 per barrel.

Due to high profits, importers offered high commission to retailers, ranging from VND550 to VND900 per litre, to promote sales.

Meanwhile, distributors yesterday raised gas prices by roughly VND12,000 ($0.57) to around VND351,000 per 12kg canister following the Ministry of Finance's decision to re-impose a 5 per cent import tax the previous day.

The distributors include MT Gas, Petrolimex Sai Gon, Sai Gon Petro and Gas SP, amongst others.

Do Trung Thanh, deputy director of Sai Gon Petro's business department, attributed the price hike to higher import tax, saying the new prices were calculated based on total costs.

The MoF re-imposed the import tax as global prices fell. The 5 per cent tariff was brought back in a bid to help balance the State budget, according to a ministerial report.

In March this year, the Government reduced the tax from 5 to zero per cent in order to help businesses and the public cope with fuel price hikes.

However, since April, gas prices have been falling, a trend expected to continue this month.

In early April, retail gas prices on the local market stood at VND405,000-416,000 ($19.29-19.81) per 12kg canister. — VNS

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