A worker refuels a vehicle at a petrol station in Hưng Yên Province. — VNA/VNS Photo

HÀ NỘI — Retail fuel prices in Việt Nam were sharply cut from 10pm on Wednesday after authorities tapped the petrol price stabilisation fund to curb costs amid volatile global markets.

According to a joint decision by the Ministry of Industry and Trade and the Ministry of Finance, the price of RON95-III petrol – the most widely used grade – fell by VNĐ3,880 to VNĐ25,240 (US$0.95) per litre.

E5 RON92 biofuel also dropped by VNĐ3,620 to VNĐ22,950 per litre.

Oil products were reduced by between VNĐ4,240 and VNĐ7,970 per litre or kilogramme, depending on the product. Diesel now costs VNĐ26,470 per litre, kerosene VNĐ24,410 per litre and mazut VNĐ19,000 per kilogram.

The adjustment marks the second time in more than three years that the Government has deployed the fuel price stabilisation fund within just two days. Under the mechanism, the fund is used at VNĐ4,000 per litre for petrol, kerosene and mazut, and VNĐ5,000 per litre for diesel.

At a meeting with the national energy security task force on March 10, Prime Minister Phạm Minh Chính approved the immediate use of the fuel price stabilisation fund from March 11.

Authorities have also moved to secure supply. Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân said the Government had mobilised about four million barrels of crude oil from partners, enough to cover roughly 30–45 days of domestic demand depending on refinery output and domestic consumption.

To support the market, the most-favoured nation import tariff on petrol and some blending materials has been cut to zero. Meanwhile, the Ministry of Finance is proposing to reduce the environmental protection tax on petrol and oil to zero from March 12, which could lower retail prices by around VNĐ1,000–2,000 per litre. — BIZHUB/VNS